Label each item below as relevant or irrelevant in making a decision
a) Cost of roof repair made on rental property last year
b) The cost of insurance on a new vehicle when deciding to buy a new vehicle
c) Cost of new equipment under evaluation to replace used equipment
d) Original cost of old equipment that is being evaluated for replacement
e) Cost of previous year's insurance policy on old equipment being evaluated for replacement
f) Accumulated depreciation on old equipment being evaluated for replacement
a) irrelevant
b) relevant
c) relevant
d) irrelevant
e) irrelevant
f) irrelevant
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Insurable interest is required for all of the following reasons EXCEPT:
(a) to prevent gambling (b) to measure the extent of loss (c) to reduce premiums (d) to reduce moral hazard
According to the text, the key to an effective presentation is preparation
Indicate whether the statement is true or false