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:

Evidence Driven

An approach that bases decisions, conclusions, or actions on empirical data and observed evidence rather than on intuition or opinion.

Crutchfield Situation

A procedure used in social psychology experiments to study conformity, where individuals must make judgments while being exposed to the purported judgments of others.

Asch Situation

A psychological experiment by Solomon Asch that demonstrates the power of conformity in small groups, where individuals often agree with an incorrect majority opinion on a clear task.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character or persona.