Joe Owned a House That Would Cost $200,000 to Replace

question 74

Essay

Joe owned a house that would cost $200,000 to replace. He took out an insurance policy for only $100,000, reasoning that any damage that would take place would likely be under that amount. In fact, there was a fire and the total loss was $50,000. Indicate what problems Joe might run into when he tries to collect.

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Definitions:

Fordlandia

A failed industrial town founded in the Brazilian Amazon by American industrialist Henry Ford in the 1920s, intended to secure a source of cultivated rubber for his automobile manufacturing operations.

Eugenics

A discredited and controversial social philosophy advocating the improvement of human genetic traits through selective breeding or genetic manipulation.

Pan-Africanism

A political and social movement that seeks to unify African people, both on the continent and in the diaspora, to work towards their collective interests.

Radio Corporation of America

An American electronics company that was a major player in the development of radio broadcasting in the United States and also had significant developments in television and other electronics.