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Steve and Kelly own a single-family home insured under an Insurance Services Office (ISO) Homeowners 3 – Special Form (HO-3) policy. One evening, a fire destroys the home’s living room and several adjoining rooms. The structural damage to the home because of the fire is $75,000. The family’s television is damaged. Cash ($375), which Steve kept in a countertop cookie jar for food shopping trips, was also destroyed. Steve and Kelly are insured under an unendorsed HO-3 policy with a $300,000 dwelling limit and a $500 deductible. For the purposes of this case, assume that Steve and Kelly are in compliance with all policy conditions, including Coverage A replacement cost provisions.
Identify the component of the HO-3 policy that would be used to determine whether coverage applies to Steve and Kelly at the time of the loss.
Marty's Barber Shop has one barber. Customers have an arrival rate of 2.9 customers per hour, and haircuts are given with a service rate of 4 per hour.
Decision making is choosing among alternative courses of action, including inaction.
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