Solve the Problem. -Haverty's Furniture Owns a Building with a Replacement Cost of Replacement

question 99

Multiple Choice

Solve the problem.
-Haverty's Furniture owns a building with a replacement cost of $590,000 which is insured for $371,700 with an 80% coinsurance clause. The building has a fire loss of $20,500. How much will the insurance company pay?

• A)$12,915
• B)$16,144
• C)$20,500
• D)$19,373

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Definitions:

Linear Perspective

A method in art and design that depicts objects and scenes as they appear to the eye with diminishing size and converging lines for depth and proportion.

Convergence

The coming together of various factors or phenomena to produce a combined effect, or the ability of the eyes to simultaneously turn inward to focus on an object.

Perception

The process by which sensory information is interpreted and understood by the brain, leading to an awareness or understanding of the environment.

Bottom-up Processing

An approach to information processing based on incoming data from the environment to form a perception.