What Is the Effect of the Optional Agreed Value Provision

question 8

Multiple Choice

What is the effect of the optional agreed value provision in the building and personal property coverage form?

• A)It provides replacement cost coverage.
• B)It increases insured values along with inflation.
• C)It suspends the coinsurance clause.
• D)It reduces the deductible to $50.

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Definitions:

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Underemployment

A situation in which workers are employed in positions requiring less education and skill than they have.

Productivity

A measure of the efficiency of production, often calculated as the ratio of outputs produced to inputs used.

Capital Flight

the large-scale exodus of financial assets and capital from a country due to economic instability or unfavorable investment conditions.