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:

Ex-Dividend Date

The date on which a stock begins trading without the right to receive the next dividend payment, causing its price to adjust downwards.

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments on behalf of clients.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Dividend Announcement

is a public declaration by a company of its intention to pay out earnings to its shareholders in the form of dividends.