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.