Which of the Following Insurance Policy Provisions Requires That the Insured

question 54

Multiple Choice

Which of the following insurance policy provisions requires that the insured must pay for part of the loss of a claim if the property is not insured for the specified percentage of replacement value?

• A)personal property floater
• B)an endorsement
• C)assigned risk clause
• D)umbrella coverage
• E)coinsurance clause

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Definitions:

Medium of Exchange

Any item sellers generally accept and buyers generally use to pay for a good or service; money; a convenient means of exchanging goods and services without engaging in barter.

Coincidence of Wants

A situation in barter economies where two parties each possess goods or services that the other desires, enabling a direct exchange without the need for a common medium of trade.

Circular Flow Diagram

The circular flow diagram is an economic model that shows how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.

Revenue

The income that an organization receives from its normal business activities, usually from the sale of goods and services.