A Total Loss Under a Valued Policy Is Settled on the Basis

question 46

Multiple Choice

A total loss under a valued policy is settled on the basis of the

• A)market value of the loss.
• B)actual cash value of the loss.
• C)replacement value of the loss.
• D)amount of insurance covering the loss.

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Definitions:

Injuries

Physical or emotional harm or damage sustained by an individual, often due to accidents or actions of others.

Investment Firm

A company or entity that specializes in making investments on behalf of its clients and gives advice on financial securities.

Government Bonds

Debt securities issued by a government to finance its expenditures, offering a fixed or variable interest rate to investors.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.