Which of the Following Statements Describes How Losses Will Be

question 27

Multiple Choice

Which of the following statements describes how losses will be settled if a property insurance policy is written on a replacement cost basis?

• A)Losses are settled without the applicable deductible.
• B)Losses are settled without a deduction for depreciation.
• C)The insurer must replace the damaged or destroyed property in lieu of a cash settlement.
• D)The policy is converted to a valued policy.

---

Definitions:

Group Cohesiveness

The extent to which members of a group feel bonded or united toward achieving a common goal.

Social Activities

Engagements that involve interaction with others for entertainment, recreation, or other social purposes.

Cohesiveness

Refers to the degree of camaraderie within a group.

Productivity

The measure of efficiency in converting inputs into useful outputs, often evaluated in terms of the amount of output produced per unit of input.