Barnaby Is Applying for Insurance for His New Home

question 79

Multiple Choice

Barnaby 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 be covered with his home at 125% of his home's insured amount.
• E) His coverage should be increased as construction costs rise.

---

Definitions:

Prenatal Development

The process of growth and development within the womb from conception to birth.

Klinefelter's Syndrome

A genetic condition affecting males, characterized by the presence of an extra X chromosome, leading to various physical, developmental, and reproductive challenges.

Masculine Physique

Physical characteristics traditionally associated with men, such as greater muscle mass and strength.

Genetic Sex

The biological classification of an organism as male or female, typically determined by the chromosomes it inherits.