With Respect to the HO Dwelling Coverage,select the Most Accurate

question 19

Multiple Choice

With respect to the HO dwelling coverage,select the most accurate statement:

• A)if the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay the replacement cost minus the deductible, but no more than the policy limit
• B)if the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay replacement cost minus the deductible
• C)if the amount of insurance divided by 80% of the replacement cost equals 1 or greater, the company will multiply that result by the loss, subtract the deductible, then pay that amount
• D)the insurer must only pay actual cash value for any loss unless the insured has insurance equal to 100% of the replacement cost of the property

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