If You Wanted to Obtain an Endorsement That Automatically Updates

question 72

Multiple Choice

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home,you would ask for a(n)

• A)inflation guard.
• B)automatic adjustment policy.
• C)replacement cost index.
• D)continual adjustment policy.
• E)none of the above.

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Definitions:

Capital Budgeting

The process that a business uses to evaluate potential major investment or expenditure projects, using various techniques to determine their value.

Working Capital Management

The supervision of a company's short-term assets and liabilities to ensure its efficient operation and financial stability.

Credit Management

The process of granting credit, setting the terms it's granted on, recovering this credit when it's due, and ensuring compliance with company credit policy.

Borrowing

The act of obtaining funds from another party with the promise of repayment at a later date, often with interest.