Jerry Has a Property Insurance Policy on a Building That

question 81

Multiple Choice

Jerry has a property insurance policy on a building that would cost $200,000 to replace. His insurance policy is written on an actual cash value basis. His building suffers fire damage that has a replacement cost of $50,000. The building is 2 years old, with an estimate useful life of 20 years. How much will he collect for the fire damage?

• A) $5,000
• B) $10,000
• C) $25,000
• D) $45,000

---

Definitions:

Distribution Density

The extent of a product's availability across a geographic area or within a distribution network, influencing market saturation.

Marketing Channels

Pathways through which a company's products or services are distributed to reach the consumer, including both direct and indirect channels.

Corporate Vertical Marketing Systems

A structured form of marketing systems where a single corporation controls multiple levels of production, distribution, and sales within its supply chain.

Successive Stages

Sequential phases or steps in a process or development.