. Assume that John Marshall owns a $150,000 home, which covers the replacement cost of the structure. (Ignore the deductible clause and just consider the coinsurance requirement). If John purchased $120,000 worth of coverage, how much would he collect for a partial loss of $40,000? For a total loss of $150,000?

2. If John purchased $100,000 of insurance, how much would he collect for a $40,000 loss? How much would he collect for a total loss? (again, ignore the deductible clause)

3. Now, assume that John Marshall purchased $50,000 of insurance on his $150,000 home. How much would he collect for a partial loss of $40,000? How much would he collect for a total loss? (again, ignore the deductible clause)

4. Now, assume that all the conditions of the loss settlement clause of the HO apply to the case. Assume that John has $100,000 coverage on his $150,000 house, which has been used for only one-eighth of its estimated useful life. How much would John collect for a $40,000 partial loss? How much would be collected for a total loss?

5. Finally, given the same amount of coverage as in the preceding question, if John's home had been used for seven-eighths of its estimated useful life, how much would John collect for a $40,000 partial loss?

6. Under the HO, will a theft loss in April mean less coverage available for a fire in July? Explain