Which of the Following Does Not Represent a Usual Way

question 22

Multiple Choice

Which of the following does not represent a usual way to measure the amount recoverable when there has been a successful claim on an insurance policy?

• A)The market value of the subject matter of the insurance at the time of the loss or destruction.
• B)The amount required to replace the subject matter of the insurance.
• C)The amount required to repair the subject matter of the insurance.
• D)The amount it would cost to buy the subject matter of the insurance at the time the claim is resolved.

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Definitions:

Dollar Amount

A numerical monetary value denoted in the currency of the United States.

Interest Earned

The total amount of interest received by a person or entity on investments over a specific period of time.

Convertible Bonds

Bonds issued by a company that can be exchanged by the holder for a predetermined number of the company's shares.

Common Stock

A type of security that represents ownership in a corporation and entitles its holder to a share of the company's profits through dividends and/or capital appreciation.