Question

Oleg purchased a single-family home in West Sacramento and is going to move into it as soon as escrow closes. Which homeowner's policy should he purchase?

A. HO-6

B. HO-4

C. HO-3

D. NONE

E. Any of these could work.

Oleg is moving into an apartment he just rented in Rancho Cordova. Which homeowner's policy should he purchase?

A. HO-6

B.HO-4

C.HO-3

D.NONE

E. Any of these could work.

Which of the following statements is true?

A. hazard is a cause of loss that is excluded by an open-peril policy

B. hazard is a cause of loss that is covered by an open-peril policy

C. hazard is a cause of loss that is excluded by a named-peril policy

D.hazard is a cause of loss that is covered by a named-peril policy

E. None. All are incorrect.

Answer 1

1). Option C is correct. HO-3 policy is most suited for a single family home as HO-6 is specifically designed for a condo and HO-4 is a renter's policy.

2). Option B is correct. HO-4 policy is designed to meet the needs of people who are renting an apartment/condo/home.

3). Option E is correct. Hazard is not a cause of loss. It is a condition that increases the chances of a loss occuring. Peril is a cause of loss.