If a homeowner's insurance policy provides coverage for less than 80 percent of the full replacement cost of the dwelling, then the loss of the residence will be settled for
A) the market value of the property less the land value.
B) the lowest repair bid.
C) either the actual cash value or the prorated repair cost.
D) the total replacement cost.
Answer: C) either the actual cash value or the prorated repair cost.
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The figure above shows a perfectly competitive firm. The firm will shut down in the short run if total fixed costs
A) are between $201 and $400. B) exceed $401. C) are less than $200. D) exceed total costs.
If the purchasing power of the dollar is always the same at home and abroad, then the nominal exchange rate defined as units of foreign currency per dollar decreases if the U.S. price level rises more than the price level in foreign countries
a. True b. False Indicate whether the statement is true or false