Frank's Property Insurance Requires Periodic Reporting of Inventory Values

question 44

Multiple Choice

Frank's property insurance requires periodic reporting of inventory values.Frank believes he can save money by under-reporting the inventory.Last period,Frank reported $200,000 when the value was really $400,000.Shortly after filing the report,when the value was $500,000,the inventory was destroyed.How much will Frank's insurer pay,assuming no deductible?

• A)nothing,as underreporting voids coverage
• B)$200,000
• C)$250,000
• D)$400,000

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Definitions:

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate their votes in any preferred proportion among the candidates, enhancing the voting power of minority shareholders.

Votes Cast

The total number of votes made by shareholders or members in an election or decision-making process.

Proxy

Grant of authority by a shareholder allowing for another individual to vote his or her shares.

Preferred Stock

A type of corporate share that is prioritized over common stock in terms of asset and income claims, usually with dividends paid out to these shareholders first.