What is the effect of the optional agreed value provision in the building and personal property coverage form?
A) It provides replacement cost coverage.
B) It increases insured values along with inflation.
C) It suspends the coinsurance clause.
D) It reduces the deductible to $50.
Answer: C
Business
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Which of the following is a source of information a risk manager could use to help identify pure loss exposures?
A) commodity prices B) physical inspections C) currency exchange rates D) interest rate movements
Business
Which of the following statements regarding the use of retention is (are) true?
I. Retention is best used for loss exposures that have a low frequency and a high severity. II. A financially strong firm can have a higher retention level than a firm whose financial position is weak. A) I only B) II only C) both I and II D) neither I nor II
Business