In Which of the Following Situations Will the Insured Be

question 100

Multiple Choice

In which of the following situations will the insured be able to collect the entire amount of the insurance claimed?

• A) Jane had a compact disc player worth $300. It was portable and it was stolen from her car. She had a house policy and a car policy, both of which provided coverage. Jane claimed $300 from each policy.
• B) Joe has his house insured for $100,000 when the actual value of the house is $200,000. When it burns down, Joe claims $200,000.
• C) Joe owns a house on a lot in Regina, and although the property would sell for $100,000, the value of the house is only $50,000. Joe takes out a $50,000 policy against loss to the house, which is subsequently destroyed by fire. Joe claims $50,000.
• D) Joe and his wife both own a one-half interest in their house, worth $100,000. Joe took out an insurance policy in his own name for the $100,000 and the house is destroyed by fire. Joe claims the $100,000.
• E) Joe takes out insurance on his neighbour's house for $50,000 because his neighbour is notoriously careless. Sure enough, the house burns down with $50,000 loss.

Describe the relationship between futures contracts for storable commodities and financial theories.

Understand credit risk in the swap market and the limitations thereof.

Understand the essentials of agency theory and the owner-manager relationship, including risk aversion and other agency problems.

Grasp the basics of accounting theories, including normative and positive theories and their development processes.

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Definitions:

Rogue Nation

A term used to describe a country that acts in a way that is not in line with international norms or laws, often engaging in dangerous or unpredictable behavior.

Ideology

denotes a systematic body of concepts, especially about human life and culture, that guides an individual, social movement, institution, or large group.

Wealthiest Nation

A term typically referring to a country with a high level of economic productivity, income, and wealth per capita.

Preventive War

A conflict initiated to prevent another party from acquiring a capability for attacking, under the presumption of future threat.