Which of the Following Was the Result in Royal Capital

question 60

Multiple Choice

Which of the following was the result in Royal Capital Development LLC v. Maryland Casualty Company, the case in the text involving whether on a policy of insurance covering "direct physical loss of or damage to" a building that allows the insurer the option of paying either "the cost of repairing the building" or "the loss of value," the insurer must also compensate the insured for the diminution in value of the building if the insured elects to repair the building?

• A) That the insurer could choose between repairing the building or paying for its loss of value and that once proper repairs were made, the insurer had no obligation to cover any diminution in value.
• B) That unless the insured notified the insurer prior to the beginning of repairs that a claim for diminution in value would be made, the issue was waived because the insurer was entitled to take such a claim into consideration in making its decisions.
• C) That a claim for diminution in value could be made only if the insurer delayed in making repairs such that the insured had an equitable claim for diminution in value.
• D) That when a policy promised to pay the insured's loss, the insured has no claim for diminution in value if repairs are made.
• E) That when a policy promised to pay the insured's loss, the insured had a claim for diminution in value even if repairs were made.

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Definitions:

Coupon

A promotional tool in the form of a voucher that offers a discount or rebate on the purchase of a product or service.

Marginal Analysis

Marginal Analysis is an assessment method used to evaluate the impact of a small change in production levels or economic activity, focusing on the cost and benefit of making that change.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, including mineral deposits, crops, and water.

Savings Account

A bank account that earns interest in exchange for holding funds.