John Dresser, Who Owns a Small Manufacturing Concern, Has Just

question 63

Multiple Choice

John Dresser, who owns a small manufacturing concern, has just signed a commercial property policy with a clause requiring Dresser to maintain insurance equal to 80 percent of the property's value at the time of an actual loss. Dresser has accepted what is known as a ____ clause.

• A) coinsurance
• B) realty protection
• C) realty reserve
• D) override protection

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Definitions:

Workbook Problems

Exercises or assignments found in a workbook designed to practice or test understanding of a subject.

Term Papers

Research papers written by students over an academic term, accounting for a large part of a grade.

Utility Function

A mathematical representation of how consumer preferences are related to the consumption of goods and services.

Competitive Market

A market structure characterized by a large number of buyers and sellers, all of whom have minimal impact on the market price.