The value of a home is $50,000, and the homeowner policy covering it contains an 80% coinsurance clause. Assume the home is insured for $30,000 and a $12,000 loss occurs
How much will the insured recover? (Ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.)
A) $12,000
B) $9,000
C) $16,000
D) The answer cannot be determined by the facts given.
B
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OKAY stock has a beta of 0.8. The market as a whole is expected to decline by 12% thereby causing OKAY stock to
A) decline by 9.6%. B) decline by 12.5%. C) increase by 9.6%. D) increase by 12%.
If a lease is classified as a capital lease because the lease agreement contains a bargain purchase option, the time period to be used by the lessee to amortize the leased property is
A) the lease term. B) the expected economic life of the property. C) the lease term or the expected economic life of the property, whichever is shorter. D) the maximum amortization period for intangible assets.