Yogi Is Applying for Insurance for His New Home

question 17

Multiple Choice

Yogi 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 to rebuild or repair the new home.
• 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 be covered with his home at 125% 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:

Randomness

The occurrence of events without any predictable pattern or order.

Uncertainty

The state of being uncertain; situations in which outcomes, responses, or effects are unpredictable or unknown.

Framing

The way information is presented or communicated, which can influence an individual's understanding, interpretation, and decision-making.

Lack Of Participation

The absence or insufficiency of involvement by individuals or groups in activities or decisions that affect them.