If Property Covered by a Valued Policy Is Totally Destroyed

question 24

Multiple Choice

If property covered by a valued policy is totally destroyed:

• A)the insured can recover the face amount of the policy only if it does not exceed the fair market value of the building.
• B)the insured can recover only the fair market value of the building.
• C)the insured can recover the face amount of the policy regardless of the fair market value of the building.
• D)the insured can recover the fair market value of the property at the time it was destroyed,up to the limits stated in the policy.

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Definitions:

Protective Tariff

A tax imposed on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Free Trade

A trade policy that minimizes restrictions on imports and exports between countries, promoting global economic integration.

Sea Islands Experiment

The 1861 pre-Reconstruction social experiment that involved converting slave plantations into places where former slaves could work for wages or own land. Former slaves also received education and access to improved shelter and food.

Reconstruction

The period following the American Civil War (1865-1877) during which the United States attempted to address the issues of the Southern states' reintegration into the Union, the status of the freed slaves, and the destroyed Southern economy.