Under what basis is personal property covered under an HO-3 policy?

a. Open Peril

b. Special Peril

c. Named Peril

d. Contingency Peril

Answer: C

Homeowners Policy

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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