(Scenario: Flood Area)Use Scenario: Flood Area

question 183

Multiple Choice

(Scenario: Flood Area) Use Scenario: Flood Area.Suppose that an insurance company offers you flood insurance.MOST likely,this insurance would require a premium payment: Scenario: Flood Area
Suppose that you own a home that is estimated to be worth $250,000.You live in a flood plain;as a result,the probability that you will lose your home to a flood is 30%.

• A)greater than $250,000.
• B)greater than $75,000.
• C)less than $15,000.
• D)equal to $100,000.

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Definitions:

Nonnegotiable

Pertaining to an item or document that cannot be transferred or assigned to another party in exchange for money or goods.

Assignment

The transfer of rights, property, or obligations from one party to another, often used in contexts such as contracts, leases, and insurance policies.

Qualified Indorsement

An endowment that restricts the transfer of a negotiable instrument except under certain conditions.

Negotiability

Negotiability refers to the characteristic of a document or instrument that allows it to be transferred or assigned from one party to another, ensuring the transferee obtains certain legal rights.