Which of the following statements about the Homeowners 8 policy is (are)true?
I.Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value.
II.It is designed primarily for expensive,newer,dwellings.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

The Homeowners 8 policy (HO-8), also known as the Modified Coverage Form, is actually designed for older homes where the cost to rebuild might exceed the market value. Losses under this policy are typically settled on an actual cash value basis, not replacement cost, and it is not specifically intended for expensive, newer dwellings.

Which of the Following Statements About the Homeowners 8 Policy