Andrew Is Applying for Insurance for His New Home

question 44

Multiple Choice

Andrew 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 replacement 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:

Hydrogen Atoms

The simplest and most abundant type of atom in the universe, consisting of one proton and one electron.

ATP To ADP

The process by which adenosine triphosphate (ATP) releases a phosphate group to become adenosine diphosphate (ADP), releasing energy for cellular activities.

Equilibrium Point

A condition or state where all competing influences are balanced, often referred to in physical and economic models.

Competitive Inhibition

Binding of a substance (the competitive inhibitor) to the active site of an enzyme, thus lowering the rate of the reaction catalyzed by the enzyme. Compare with noncompetitive inhibition.