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:

Agreeableness

A personality trait characterized by qualities such as kindness, cooperation, warmth, and consideration of others.

Empirically Derived Tests

Psychological tests developed by creating a large pool of items, then selecting those that discriminate between different groups of people based on empirical data.

Factor Analysis

A statistical method used to identify clusters of related variables and simplify data by reducing it to underlying factors.

Personality Traits

Enduring characteristics that describe an individual's behavior, thought patterns, and emotions.