Jamil and Vicky Purchased a $200,000 Homeowners Policy for Their

question 64

Multiple Choice

Jamil and Vicky purchased a $200,000 homeowners policy for their house in 1988.They have renewed the policy each year since and have replacement coverage.This policy has a $1,000 deductible.Their home now has a replacement value of $275,000.Last week they came home to find a small fire which caused the following damages:
How much will the insurance company pay for the $50,000 loss to their home?

• A) $ 50,000 less the deductible
• B) $ 45,000 less the deductible
• C) $ 57,000 less the deductible
• D) $200,000 less the deductible
• E) none of the above

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Definitions:

Attrition

The loss of participants during the course of a study, which can potentially bias the results.

Maturation

The process of growth or development, often in the context of organisms or psychological development in research.

Diffusion

The process by which an innovation is communicated through certain channels over time among members of a social system.

Control

In experimental research, the standard by which test results are compared, often a group that does not receive the experimental treatment.