Final answer:
Monthly Reporting Type Policies are not the same as Peak Season Endorsements; hence option b is NOT TRUE. Monthly Reporting Type Policies require regular reporting of the property's value to adjust coverage and prevent over-insuring or under-insuring, with penalties for non-compliance.
Step-by-step explanation:
The question is asking which statement is NOT TRUE about Monthly Reporting Type Policies in the context of insurance. Let's address the options provided one by one:
- (a) Insured parties are generally required to report the full value of the property they are insuring, which is true for Monthly Reporting Type Policies.
- (b) They are the same as Peak Season Endorsements to a policy. This statement is false. Monthly Reporting Type Policies are not the same as Peak Season Endorsements. Monthly Reporting is a method to reflect fluctuating values over a period, while Peak Season Endorsements are designed to increase coverage limits during specific high-value periods.
- (c) Monthly Reporting Type Policies are indeed intended to help prevent over-insuring and under-insuring by regularly adjusting the coverage to the actual value of the property.
- (d) A penalty can indeed be levied for under-reporting or late reporting the value of the insured property, so this statement is true.
Therefore, the correct answer to the question is option b, as Monthly Reporting Type Policies are NOT the same as Peak Season Endorsements.