The 80% Coinsurance Clause in a Homeowner's Policy Would Cause

question 53

Multiple Choice

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

• A) dwelling limit of $75,000,replacement cost of dwelling $90,000,actual cash value of dwelling $85,000
• B) dwelling limit of $75,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000
• C) dwelling limit of $90,000,replacement cost of dwelling $90,000,actual cash value of dwelling $90,000
• D) dwelling limit of $110,000,replacement cost of dwelling $110,000,actual cash value of dwelling $90,000
• E) dwelling limit of $120,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000

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Definitions:

Connective Tissue

A type of body tissue that supports, connects, or separates different types of tissues and organs in the body.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Mismatched Blood

Blood transfused into a person that is not compatible with their blood type, potentially causing serious reactions.

Patient

An individual receiving or registered to receive medical treatment.