If You Have Two Insurance Policies on the Same Property

question 24

Multiple Choice

If you have two insurance policies on the same property, the _____ explains how the two insurance companies will share the loss.

• A) co-insurance clause
• B) personal property floater (PPF)
• C) right of subrogation
• D) other-insurance clause
• E) principle of indemnity

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Definitions:

Initial Investment

The amount of money used to start a project, purchase assets, or establish a business foundation.

Simple Rate Of Return

A method of calculating the return on an investment without taking into account compound interest or the passage of time.

Cash Operating Costs

Direct expenses incurred during regular operations, such as manufacturing costs, labor, and raw materials, excluding non-cash costs like depreciation.

Automating

involves the use of systems and technology to perform tasks with minimal human intervention.