The ____________ Method to Settle Claims Is Based on the Current

question 53

Multiple Choice

The ____________ method to settle claims is based on the current replacement cost of a damaged or lost item less depreciation.

• A)replacement value
• B)actual cash value
• C)umbrella
• D)endorsement
• E)personal articles endorsement

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Definitions:

Loss-Minimizing

A strategy aimed at reducing the impact of losses in operations, finance, or investment, usually by identifying and mitigating risk factors.

Loss

A financial situation in which expenses exceed revenues, indicating negative profitability for a business or investment.

New Firms

Newly established business entities that have recently started operations, contributing to innovation, competition, and economic dynamics.

Existing Firms

Businesses that are already operating within a market, as opposed to new entrants.