Assume That the Physical Property of a Business Is Valued

question 33

Multiple Choice

Assume that the physical property of a business is valued at $50,000. The company's commercial property policy contains a coinsurance clause with a stated percentage of 80 percent. The company insures the property for $30,000 (75 percent of the specified minimum) . The company incurs a fire loss of $20,000. How much of the loss will the insurance company pay for?

• A) $20,000
• B) $15,000
• C) $0
• D) $10,000

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Definitions:

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a public market for buying and selling shares of publicly held companies, facilitating equity investments and capital raising for companies.

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A U.S. labor law that provides employees with unpaid, job-protected leave for family and health-related reasons.

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Entities or individuals who hire and pay people to work for them, often within an organizational structure that includes responsibilities such as providing salaries and ensuring workplace safety.