Frank's Property Insurance Requires Periodic Reporting of Inventory Values

question 46

Multiple Choice

Frank's property insurance requires periodic reporting of inventory values.Frank believes he can save money by under-reporting the inventory.Last period,Frank reported $200,000 when the value was really $400,000.Shortly after filing the report,when the value was $500,000,the inventory was destroyed.Ignoring any deductible,how much will Frank's insurer pay?

• A)nothing,as underreporting voids coverage
• B)$200,000
• C)$250,000
• D)$400,000

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Definitions:

Arctic Foxes

A small mammal native to the Arctic regions, known for its thick fur that changes color with the seasons.

Emergent Property

A property or quality that arises as an effect of complex interactions and interdependencies among components within a system, which cannot be predicted solely from knowledge of the individual parts.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In an experiment, a variable presumed to be influenced by the independent variable being tested.