Vincent Is Applying for Insurance for His New Home

question 84

Multiple Choice

Vincent is applying for insurance for his new home.Which of the following is correct?

• A) He should base the amount of insurance on the price he paid for it.
• B) He should insure the building for 75% of its replacement cost.
• C) He should use the actual cash value method for settling claims to receive the full cost of repairing or replacing his personal belongings.
• D) His personal belongings should automatically be covered with his home at 55-75% of his home's insured amount.
• E) His insured amount should remain the same as long as he lives in his house.

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Definitions:

Generalization

A principle in psychology that refers to the tendency of a response that is learned to one stimulus to be elicited by similar but distinct stimuli.

Unconditioned Response

An innate, automatic response to a stimulus that happens spontaneously, without the need for prior learning or conditioning.

Generalization

The process of applying the response to one stimulus to a different but similar stimulus, often used in learning and behavioral psychology.

Mixed Emotional Reactions

Mixed Emotional Reactions are complex responses that involve experiencing more than one emotion at the same time, often felt during emotionally complex situations.