6. James negligently burns some leaves and causes his neighbor's house to burn. The damage incurred by the neighbor is $170,000. a) Which coverage section is relevant here? Circle one: Coverage A Coverage B Coverage C Coverage E b) How much would the insurer pay? Circle one: $12,000 $60,000 $100,000 $120,000 $170,000 7. A living room window is broken in a hailstorm. The curtain (personal property) is water stained and must be replaced. The actual cash value of the damaged curtain is $200. Replacement cost is $300. No (go to part c) $300 a) Is hailstorm a covered peril here? Circle one: Yes (go to part b) b) If yes, how much would the insurer pay? Circle one: $200 c) If no, explain why. 8. The hot water heater explodes and damages some household contents. The actual cash value of the damaged property is $1000, and the cost of replacing the property is $1600. No (go to part c) $1600 a) Is explosion a covered peril here? Circle one: Yes (go to part b) b) If yes, how much would the insurer pay? Circle one: $1000 c) If no, explain why. 9. The home is badly damaged in a severe earthquake. The actual cash value of the damaged structure is $50,000. The cost to replace the damaged portion is $70,000 a) Is earthquake a covered peril here? Circle one: Yes (go to part b) No (go to part c) $70,000 b) If yes, how much would the insurer pay? Circle one: $50,000 c) If no, explain why. 10. A guest of the house accidentally slips on the kitchen floor and breaks an arm. The accident is not James' fault. The medical bill incurred by the injured guest is $3,000. Would the expenses be covered? If so, by which section of policy? Circle your answer. Not covered Covered by Coverage E 2 Covered by Coverage F