Greg recently purchased a new home, and a named-peril home insurance policy with a $5,000 deductible. The policy is designed to provide reimbursement for losses on an actual cash value basis. Based on this information, which of the following statements is correct? Greg's named peril policy is typically more expensive than a comprehensive policy Greg's home insurance policy in example of a risk avoidance strategy Greg must use funds from any insurance claims to replace the actual item lost or damaged Greg's home insurance policy is an example of a risk transfer strategy Tom's house was destroyed by a fire, which the fire department believes was caused by a candle left unattended in the kitchen. The peril in this case is the: Candle Fire The house Tom's absence Which of the following statements regarding home policies is correct? Most home insurance policies include personal liability insurance that provides only the insured with protection for legal liability to others The homeowner's policy covers liability associated with operation of a business, even if the policy owner owns the business. A liability policy also covers liability to persons employed by the policy owner to assist in maintaining the policy owner's residence. Home owners policies have a deductible A valid life insurance contract requires that the policy owner have an insurable interest on the life insured: Only at the time the contract was issued Only during the initial contestable period Only at the time of a claim Throughout the term of the life insurance contract