Which of the Following Is True of the Coinsurance Feature

question 21

Multiple Choice

Which of the following is true of the coinsurance feature of property insurance?

• A)It prevents the insured from insuring for a minimal amount and recovering in full for such losses.
• B)It precludes the insured from insuring for less than the coinsurance percentage.
• C)It is an additional refinement of the insurable interest requirement.
• D)It helps the insured to recover full damages for any loss.

Understand the concept of deadweight loss due to price controls.

Identify examples of price floors in real-world market scenarios.

Analyze the implications of removing a binding price floor from a market.

Understand the use of quantity controls, such as quotas, in market regulation.

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Definitions:

Overall Profitability

A measure of the total financial gain or success of a business after all expenses and costs have been subtracted from revenue.

Marginal Subcontracting Cost

The additional cost incurred for each unit or batch of production or service delivery that is outsourced to a subcontractor.

Layoff Cost

The expenses associated with terminating employees, including severance pay, benefits continuation, and administrative costs.

Hiring And Training Cost

The expenses associated with recruiting, hiring, and training employees, which include advertising for positions, interviewing, onboarding, and educational programs.