Assume That the Physical Property of a Business Is Valued

question 42

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

---

Definitions:

Mixed Strains

In microbiology and virology, referring to infections or cultures that contain two or more genetic variants of the same pathogen.

High Mortality

A state or condition of having a high death rate, often caused by environmental factors, diseases, or other external pressures.

Hawthorne Studies

A series of investigations conducted in the 1920s and 1930s that highlighted the importance of social relations and employee attitudes in the workplace.

Western Electric Company

A historical telecommunications company that played a pivotal role in the development and manufacture of telephone and electrical equipment, notably conducting the Hawthorne Studies which had a foundational impact on organizational behavior studies.