Shelly and Chris Have a Homeowner's Policy with $120,000 Coverage,a

question 48

Multiple Choice

Shelly and Chris have a homeowner's policy with $120,000 coverage,a $1,000 deductible,and required coverage of 80 percent of the replacement cost.Their home recently suffered extensive fire damage in the amount of $92,000.Assuming the replacement value of the home was $160,000,how much will the insurance company pay on this loss?

• A)$73,600
• B)$85,312
• C)$86,250
• D)$92,000

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Conglomerate Merger

Merger between two companies in unrelated industries.

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