A Building Owned by X Company Is Insured for $100

question 31

Multiple Choice

A building owned by X Company is insured for $100 000,but the insurance contract contains an 80 percent co-insurance clause.The building is damaged by fire to the amount of $20 000.The depreciated replacement value of the insured property is $250 000.The insurance company will then pay

• A)$8000.
• B)$15 000.
• C)$5000.
• D)$10 000.
• E)$20 000.

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Definitions:

Overwhelmed

A feeling of being completely overcome or overpowered by emotions, tasks, or stress, often making it difficult to cope or make decisions.

Cognitive Styles

The preferred ways an individual processes information, influences how they learn and make decisions.

Holistic

An approach that considers the whole system, including physical, psychological, social, and environmental factors, rather than just its parts.

Analytic

Pertaining to the examination of complex material or concepts by breaking them into simpler parts for understanding.