If an Insured Has Actual Cash Value Coverage,how Much Would

question 7

Multiple Choice

If an insured has actual cash value coverage,how much would he collect given the following facts?
1) replacement cost of the building is $200,000,
2) replacement cost of the loss is $30,000,
3) estimated total useful life is 30 years,and,
4) building has been in use 15 years.

• A)$70,000
• B)$45,000
• C)$30,000
• D)$15,000

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Definitions:

Neuroticism

A character trait marked by feelings of nervousness, apprehension, irritability, unease, envy, annoyance, jealousy, and feeling isolated.

Five-factor Model

A theory that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Neuroticism

A personality trait characterized by anxiety, moodiness, worry, and other emotional instability forms.

Extraversion

A characteristic of being sociable, energetic, and having a liking for engaging with others.