Under a Coinsurance Clause, If a Homeowner Insures a Home

question 29

True/False

Under a coinsurance clause, if a homeowner insures a home for less than the policy's specified percentage, the homeowner is not responsible for a proportionate share of the loss.

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Definitions:

Annually

Refers to events or phenomena that occur once every year.

Maple Bonds

Bonds issued in Canadian dollars by foreign companies in the Canadian market, allowing investors to invest in foreign entities while avoiding currency risk.

Currency Risk

The potential for financial loss resulting from fluctuations in exchange rates affecting investments or transactions in foreign currencies.

Foreign Bonds

Bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold. Thus, a Canadian firm selling bonds denominated in Swiss francs in Switzerland is selling foreign bonds.