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Three basic accounting Problems

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Question;Ted purchased a home. To finance the purchase, he borrowed $140,000 from ABC Bank, pledging the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the mortgage each month. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled? (Points: 1)The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interest.The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded.The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted.The insurer has no liability because the loss was intentional.2. All of the following statements about the Homeowners 6 (unit-owners form) policy are true EXCEPT (Points: 1)It covers personal property on an "all-risks" basis.It provides limited coverage for loss assessments.It provides limited coverage for improvements and alterations.It includes personal liability coverage.Question 3. 3. Which of the following statements about the payment of defense costs by the PAP is (are) true?I. They are paid in addition to the policy limits.II. They are payable even after the limit of liability is exhausted. (Points: 1)I onlyII onlyboth I and IIneither I nor IIWhich of the following statements concerning FAIR plans is (are) true?I. All property is eligible for coverage regardless of physical condition.II. Losses and expenses are shared by insurers who participate in a plan. (Points: 1)I onlyII onlyboth I and IIneither I nor II

 

Paper#42120 | Written in 18-Jul-2015

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