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:

Cost-of-Living Adjustment

An increase in income or benefits to match the rise in the cost of living, helping individuals maintain their purchasing power.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Tax-Deferred Account

A savings account or investment option where taxes on the principal and/or earnings are delayed until the investor withdraws the funds.

Taxable Account

An investment account in which the earnings are subject to income tax.