Joe has an HO-3 policy. He also has an unattached converted garage that he has turned into an apartment, and he rents it to a full-time college student. The apartment is destroyed by fire

What will happen with the claim according to the HO-3 contract?
A) Since fire is an excluded peril, nothing will be paid.
B) The peril of fire is not covered when it damages unattached structures.
C) There will be no payment because a rented other structure is excluded from coverage.
D) Because it was unattached, that type of property was not covered by the HO-3.


C

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Suppose the standard for a given cost during a period was $80,000. The actual cost for the period was $72,000. Under what circumstances would you consider the variance from budget to be a positive performance indication?

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