ABC Company Insured Its Building on a Replacement Cost Basis

question 10

Multiple Choice

ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause.The building had a replacement cost of $1 million when it sustained a $40,000 loss.How much will ABC Company receive from its insurer,assuming no deductible applies?

• A)$33,333
• B)$35,000
• C)$36,000
• D)$40,000

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Definitions:

Miles Per Hour

A measurement unit that indicates the number of miles covered in one hour.

Minutes

Official records documenting the discussions, decisions, and actions taken during a meeting.

Miles Per Hour

A unit of speed measurement used to express the number of miles traveled in one hour.

Miles Apart

A measurement of distance separating two points or locations, expressed in miles.