The Value of a Home Is $50,000, and the Homeowner

question 44

Multiple Choice

The value of a home is $50,000, and the homeowner policy covering it contains an 80% coinsurance clause. Assume the home is insured for $30,000 and a $12,000 loss occurs. How much will the insured recover? (Ignore the ACV calculation and assume there is no fraud or other unusual circumstances surrounding the loss.)

• A) $12,000
• B) $9,000
• C) $16,000
• D) The answer cannot be determined by the facts given.

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Definitions:

Social-cognitive Perspective

A view in psychology that emphasizes the importance of observational learning, imitation, and modeling in acquiring new behaviors.

Incompetent

Lacking the necessary skills, abilities, or qualifications to perform a particular task or job effectively.

Social-cognitive Perspective

A psychological framework that emphasizes the influence of environmental factors, behaviors, and cognitive processes on learning and development.

Vicious Cycle

A sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading to a worsening of the situation.