-Refer to Exhibit 3-11

question 180

Multiple Choice

-Refer to Exhibit 3-11.Fill in blanks (A) and (B) respectively with "Exchange" or "No Exchange" to indicate whether or not exchange would take place at the given prices.

• A) Exchange; Exchange
• B) Exchange; No Exchange
• C) No Exchange; Exchange
• D) No Exchange; No Exchange

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Definitions:

Insurable Interest

The stake or financial interest an individual or entity has in the potential loss of something insured, ensuring they suffer a direct loss if an insured event occurs.

Good Faith

A sincere intention to deal fairly with others without any intention to deceive or commit fraud.

Coinsurance Clause

A provision in an insurance policy requiring the policyholder to bear a portion of the costs of a claim, reducing the insurer’s risk.

Fire Insurance Policy

A contract that provides compensation for damage or loss of property due to fire.