Peter Bought the Old Whiteacre Mansion for $100,000

question 20

Multiple Choice

Peter bought the old Whiteacre mansion for $100,000.Due to the fact that it had an antique carved façade and other unique features inside the house, it would cost Peter $120,000 to replace the house if it were destroyed by fire.Peter, however, only insured it for $70,000.A fire from the stove destroyed the kitchen, which incurred an actual loss of $1,000.The cost of replacing the kitchen, however, is $4,000.If he had an 80% coinsurance clause in his homeowner's policy, Peter would receive:

• A)the full $4,000.
• B)less than the $4,000 loss because Peter's insurance coverage was less than 80% of the purchase price of Whiteacre.
• C)less than the full $4,000 loss because Peter's insurance coverage was less than 80% of the full replacement cost of Whiteacre.
• D)nothing, because--since Peter insured Whiteacre for less than 80% of the home's replacement value--he can collect on the policy only if there is a total loss.

Analyze the overall accessibility of health care services as influenced by the Patient Protection and Affordable Care Act.

Understand the best methods to assess learning outcomes and behavior change.

Identify considerations in planning health education programs.

Recognize the importance of community and participant involvement in health education.

---

Definitions:

Joint Venture Investment

A joint venture investment is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Acquisition Differential

The difference between the purchase price of an acquired company and the fair value of its identifiable tangible and intangible assets.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to be reinvested in its core business or to pay debt.

Cost Method

An accounting method used to recognize investments in which the investor has no significant influence over the investee, recording the investment at cost and recognizing dividends as income.