The Disadvantage of Actual Cash Value Coverage of Personal Property

question 154

Multiple Choice

The disadvantage of actual cash value coverage of personal property compared to replacement cost coverage is that it

• A)will reimburse you for replacement cost minus estimated depreciation.
• B)will reimburse you for the cash value of a new item.
• C)must be reported as a loss on your tax return.
• D)does not have to be reported as a loss on your tax return.
• E)none of the above.

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Definitions:

Parentification

When a child acts more like a parent than a child. Parentification may occur if the actual parents do not act as caregivers, making a child feel responsible for the family.

Psychological Adaptation

The process by which individuals adjust their behavior, thoughts, or emotions to cope with changes in their environment or internal states.

Nonshared Environments

Refers to the unique factors and experiences that individuals have which differentiate them from others in their genetic family, contributing to differences in personality, preferences, and behavior.

Self-concept

An individual’s perception of self, encompassing beliefs, feelings, and thoughts about one’s identity and abilities.