Which of the following is true of a monoline policy?

A monoline policy is characterized by providing a single type of coverage for a specific risk. This means that the policy focuses on one line of insurance, such as homeowners, auto, or liability insurance, rather than combining multiple types of coverage under one policy. This specificity allows for tailored coverage that meets the unique needs of the insured for that particular risk.

In contrast, options that suggest the policy covers multiple risks, only property risks, or that it is the most comprehensive type are not accurate descriptions of what a monoline policy entails. By concentrating on a single coverage, a monoline policy can offer clear terms and conditions related to that risk, making it easier for the policyholder to understand their protections.