With Respect to the HO Dwelling Coverage, Select the Most

question 18

Multiple Choice

With respect to the HO dwelling coverage, select the most accurate statement.

• A) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay the replacement cost minus the deductible, but no more than the policy limit.
• B) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay replacement cost minus the deductible.
• C) If the amount of insurance divided by 80% of the replacement cost equals 1 or greater, the company will multiply that result by the loss, subtract the deductible, then pay that amount.
• D) The insurer must only pay actual cash value for any loss unless the insured has insurance equal to 100% of the replacement cost of the property.

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Definitions:

Motivation

All the processes that initiate, direct, and sustain behavior.

Primary Drives

Basic, innate urges such as hunger, thirst, and the drive for sex, which are essential for survival.

Drive-Reduction Principle

A theory suggesting that psychological needs create an aroused state that drives an individual to engage in behaviors to reduce that tension or fulfill the need.

Motivation

The driving force behind actions, fueled by the desire to achieve a goal or satisfy a need.