A monoline policy is best described as a policy that:

A monoline policy is best described as a policy that:

• A. Covers multiple types of insurance
• B. Covers only one type of insurance
• C. Covers only property losses
• D. Covers only life insurance

Answer: (B)

In property and casualty, a monoline policy covers only one line of insurance, not several, in a single contract. That means it provides coverage for a single type—such as a homeowners policy or an auto policy—rather than bundling multiple lines like property and liability together. A package or multiline policy, by contrast, bundles different lines of insurance into one contract. So the description that it covers only one type of insurance is the best fit.

In property and casualty, a monoline policy covers only one line of insurance, not several, in a single contract. That means it provides coverage for a single type—such as a homeowners policy or an auto policy—rather than bundling multiple lines like property and liability together. A package or multiline policy, by contrast, bundles different lines of insurance into one contract. So the description that it covers only one type of insurance is the best fit.