David Owns a Commercial Building with a Replacement Cost of $4

question 13

Multiple Choice

David owns a commercial building with a replacement cost of $4 million.The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause.How much will David collect if the building sustains a covered fire loss with a replacement cost of $320,000?

• A)$266,667
• B)$275,000
• C)$300,000
• D)$320,000

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Definitions:

Sensitivity

The ability to perceive or feel things deeply, often used in reference to emotional or physical stimuli.

Twenty-third Pair

Refers to the last pair of human chromosomes, which determine an individual's sex: XX for females and XY for males.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information in the form of genes.

Sex of Child

Refers to the biological designation of a child as male or female, often determined at birth based on physical anatomy.