Question one: True and false: 1. Building and fences are considered real property while Inventory is considered personal property. 2- Most of the insureds prefer to be valued on actual cash basis rather than on replacement cost 3. Deduction and depreciations are the same concepts used by the insurer 4- Depreciation refers to the fact that the insured has to bear part of the damage before the insurer is obligated to make any payment 5- Deductibles decrease moral hazards 6- Legal liability is the responsibility, based in law, to correct or compensate some wrong actions done to another person or organization 7- Special damages compensate for those harms that are easily quantifiable or measured in dollar terms 8- If I am signing a contract that allows me to rent a certain machine for specific period of time with the promise to return thrm back in a good condition. If for any reason the machines were returned in a bad conditions the renter is liable for the loss. This is known as warranty liability 9. If you fail to act reasonably this may cause a source or a base for liability, 10- If someone died during a surgery due to surgeon mistake this may cause a base for liability insurance on the basis of negligence