Answer: Coverage is provided on a blanket basis
PAFs require each insurance article to be specified along with the limit of coverage. All-risk coverage is provided, but claims are settled on an ACV basis, although the required appraisals go a long way in determining how much insured items are worth. However, there is a floater called a PPF (personal property floater) which does insure personal property on a blanket or unscheduled basis. For example, if you sell your house and buy a motor home, you might buy a PPF to insure all your personal property in the motor home on an all-risk basis, anywhere in the world. Another type of floater, called a fine arts floater, insures items on a valued or stated amount basis, rather than ACV. This is used for paintings, sculpture, etc.
Answer: Medical bills, Loss of income, Pain, suffering, and (if death occurs) funeral expenses
Bodily injury to others is covered under Section II of your homeowners policy. The plaintiff must prove that you, the defendant, were negligent in order to recover damages under your homeowners personal liability coverage. If the injured party wins the case against you, their medical bills, pain, suffering, loss of income, and funeral expenses (should death result) would all be covered expenses.
Answer: They are covered, even if the claim is groundless or excluded
Remember, you are looking for what is false. The choice of "They are in addition to limits" is true; cost of defense is in addition to limits. Choice "The insurer has the option to select the lawyer" is also true, the insurer picks the lawyer. Choice "They will no longer be paid once the policy limits have been paid out" is true, the cost of defense ends when the policy limits have been paid out to others. Choice "They are covered, even if the claim is groundless or excluded" is the answer. This choice is false. Part of the answer is true, but part of it is false. Remember, if part of an answer is false, that makes all of the answer false. The cost of defense will cover false, fraudulent or groundless claims. But, defense costs are not covered on an excluded claim. So that makes choice "They are covered, even if the claim is groundless or excluded" the right answer, because it is the false statement.