A residential parcel of property is rezoned to commercial. The value of this parcel of property would MOST LIKELY:

A. Decrease in value.
B. Increase in value.
C. Remain unchanged.
D. Depreciate

Answer: B. Increase in value.

Business

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The two requirements which governmental units must observe in the exercise of the power of eminent domain are:

A: The proposed use must be both practical and public; B: The inconvenience to the owner must not be greater than the benefit to the public, and the government must justify the taking; C: The proposed use must be practical, and just compensation must be paid to the owner; D: The proposed use must be public, and just compensation must be paid to the owner.

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Which of the following is not a reason for using deductibles in property insurance?

A) They reduce the morale hazard B) They eliminate payment for frequent small losses C) They allow consumers to customize contracts based on financial considerations D) To split large losses in excess of the policy limits equitably between the insured and the insurer

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