Henderson Owned a Concrete Block Building Valued at $20,000

question 36

True/False

Henderson owned a concrete block building valued at $20,000. Because it was virtually fireproof, he insured it for only $10,000 under a policy of insurance which contained an 80% coinsurance clause. Some time later, the building was damaged by fire. Under the co-insurance clause, the insurer would only be required to pay 80% of the face amount of the policy if the building was totally destroyed by fire.

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Definitions:

Negotiating

The process of discussing and arriving at a mutual agreement between parties with differing needs or views.

Initial Opinions

Preliminary judgments or beliefs formed at the beginning of an exploration or discussion, before all information has been presented.

Mediating

The act of intervening between conflicting parties to promote reconciliation, settlement, or understanding.

Modeling

The process of emulating or imitating behaviors, attitudes, or techniques demonstrated by others as a way of learning or teaching.