Mark Owns a Building That He Insured for $90,000

question 11

Multiple Choice

Mark owns a building that he insured for $90,000.The replacement cost of the building is $100,000.Mark's property insurance policy has an 80 percent coinsurance clause.Ignoring any deductible,if Mark's building is destroyed by a covered peril,how much will Mark receive from his insurer?

• A)$80,000
• B)$90,000
• C)$101,250
• D)$112,500

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Definitions:

Butanoic Acid

A carboxylic acid with the formula C4H8O2, known for its unpleasant odor, found naturally in plant and animal fats.

2-Pentanone

A five-carbon ketone with the formula CH3COCH2CH2CH3, used as a solvent in various industrial applications.

Thionyl Chloride

A reagent used in organic synthesis for transforming carboxylic acids into acyl chlorides or converting alcohols into alkyl chlorides.

2-Phenylethanol

An organic compound with a floral scent, commonly used in perfumery and flavoring, representing an alcohol with a phenyl group attached to the second carbon.