Suppose in June You Bought an $80,000 Policy for a Building

question 34

Multiple Choice

Suppose in June you bought an $80,000 policy for a building with an actual cash value of $100,000, and the policy has an 80 percent coinsurance clause, which requires at least 80 percent of the value to be covered in order to receive the actual loss.In December, the actual cash value of the building has increased to $120,000.If the building suffers a $120,000 loss, what amount will the insurer pay?

• A)$ 100,000
• B)$ 120,000
• C)$ 80,000
• D)$ 96,000
• E)$ 90,000

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Definitions:

Round Window

Membranous structure separating the scala tympani of the inner ear from the middle ear.

Basilar Membrane

Wall of the membranous labyrinth bordering the scala tympani; supports the organ of Corti.

Perilymph

The fluid that fills the space between the membrane lining the bony labyrinth and the membranous labyrinth of the inner ear, aiding in hearing and balance.

Superior Olivary Nucleus

A collection of neurons in the brainstem involved in auditory processing, particularly in the localization of sound sources.