Which of the Following Statements About Problems Arising from the Use

question 45

Multiple Choice

Which of the following statements about problems arising from the use of a coinsurance clause is (are) true?
I.The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.
II.An agreed value coverage option is one method used to solve the problem of values that fluctuate throughout the policy term.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

---

Definitions:

High Heat Content

A characteristic of materials or substances with a significant ability to store thermal energy, often important in fuel and energy contexts.

Fuel

Substances used to generate energy through combustion or chemical reactions, such as gasoline, coal, or nuclear material.

Land Degradation

The decline in the quality of land due to human activities, environmental change, and other factors, leading to decreased agricultural productivity and the loss of land's ability to regenerate.

Conventional Oil

Petroleum extracted through traditional drilling methods, as opposed to unconventional sources like oil shale and tar sands.