Explanation: Non-economic damages are intangible losses that are not easily quantifiable in monetary terms. Pain and suffering, loss of consortium (loss of companionship or marital relations), and emotional distress are classic examples. Punitive damages are also non-economic but are intended to punish the wrongdoer. Medical bills are economic damages; they represent specific, quantifiable financial expenses incurred as a result of an injury.

Explanation: Pure risk involves the possibility of loss only, with no chance of gain. Storing a fur coat at a facility carries the risk of loss (e.g., theft, damage) without any potential for financial gain, making it a pure risk. Buying a collector car or shares of stock are speculative risks, involving potential for both gain and loss. A fundraising poker game involves elements of chance but is not a classic example of pure risk in insurance contexts.

Explanation: An HO-8 policy is specifically designed for older homes where the replacement cost significantly exceeds the market value. It provides modified coverage that accounts for the unique and often costly-to-replace features of historic or antique homes, like hand-carved molding, without requiring insurance to full replacement cost. HO-3 is a standard policy for homes where replacement cost and market value are more aligned. HO-5 offers broader open-perils coverage but is typically for newer homes. HO-6 is for condominiums.

Explanation: The standard HO-3 policy provides open perils (also known as all-risk) coverage for the dwelling (Coverage A) and other structures (Coverage B), meaning it covers all risks except those specifically excluded. For personal property (Coverage C), it provides named perils coverage, meaning it only covers losses caused by perils explicitly listed in the policy.

Explanation: Insurance policies universally require the insured to provide notice of a loss 'promptly' or 'as soon as practicable.' This is a condition precedent to coverage, meaning the insurer's obligation to pay is contingent upon being notified in a timely manner so they can investigate the claim. While some policies may specify a number of days, the fundamental requirement is prompt notice. Strict timeframes like 15 or 30 days are less common than the general duty of prompt reporting.