What Is the Effect of the Optional Agreed Value Provision

question 8

Multiple Choice

What is the effect of the optional agreed value provision in the building and personal property coverage form?

• A)It provides replacement cost coverage.
• B)It increases insured values along with inflation.
• C)It suspends the coinsurance clause.
• D)It reduces the deductible to $50.

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Definitions:

Common Stock

Equity securities that represent ownership in a corporation, with voting rights and potential for dividends.

Consolidated Equipment

Assets that are combined from different departments or subsidiaries within a company for reporting purposes, often in the context of financial statements.

Fair Values

A financial term indicating the estimated market value of an asset or liability, based on current prices in an active market.