Jacob recently took an extended tour of Europe, and while he was traveling on a train, luggage with all his clothing, personal effects, and souvenirs was destroyed in a baggage car fire. Jacob values the lost property at $2,000. Ignoring any deductible that may apply, how much of Jacob's loss will be covered by his DP-3 policy?

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Jacob lives in a rural farmhouse which he insures under an unendorsed DP-3 policy because the lack of public fire protection makes it ineligible for homeowners coverage from his insurer. The dwelling policy includes the following limits and coverages:

Limit

Coverage A

$125,000

Coverage C

$10,000

Jacob recently took an extended tour of Europe, and while he was traveling on a train, luggage with all his clothing, personal effects, and souvenirs was destroyed in a baggage car fire. Jacob values the lost property at $2,000. Ignoring any deductible that may apply, how much of Jacob's loss will be covered by his DP-3 policy?

A. $ 0

B. $ 200

C. $1,000

D. $2,000

Answer: C. $1000

AINS Chapter 7

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Life income joint and survivor settlement option guarantees

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Life income joint and survivor settlement option guarantees

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