Property Insurance Should Correspond to the Actual Value of the Property

question 80

Multiple Choice

Property insurance should correspond to the actual value of the property for all of the following reasons except

• A) if the property is insured for more, the insured will pay too high a premium.
• B) no insurance means no compensation for loss.
• C) if the property is insured for less, the insured will only receive partial compensation.
• D) if the property is insured for less, there is a danger of being a co-insurer.
• E) if the property is insured for more, there will be no compensation for loss.

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Definitions:

Market Economy

A market economy is an economic system where decisions regarding investment, production, and distribution are based on the interplay of supply and demand, and prices of goods and services are determined in a free price system.

Capital

In economics, refers to wealth in the form of money or assets owned by an individual or organization. In the context of cities, it refers to the seat of government for a region or country.

John L. O'Sullivan

A 19th-century American journalist who coined the term "Manifest Destiny," embodying the belief that the United States was destined to expand across the North American continent.