Which statement about the original Standard Fire Policy is FALSE?

The original Standard Fire Policy was a significant development in the field of insurance, but it did not represent the first multi-line policy combining both physical damage and liability coverages. In fact, the Standard Fire Policy primarily focused on providing coverage for damage to property due to fire and lightning, rather than combining multiple lines of coverage such as liability.

The valuation method typically used under the Standard Fire Policy was the actual cash value, which considers the replacement cost minus depreciation, further emphasizing that damage assessments were focused on physical property rather than liability aspects. Moreover, the policy was fundamentally a named peril policy, which meant it specified particular perils that were covered—in this case, fire and lightning.

Therefore, identifying the statement regarding the policy being the first multi-line policy as false is accurate because the original Standard Fire Policy was limited in scope primarily to property damage related to fire and did not encompass liability coverage.