The 80% Coinsurance Clause in a Homeowner's Policy Would Cause

question 53

Multiple Choice

The 80% coinsurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

• A) dwelling limit of $75,000,replacement cost of dwelling $90,000,actual cash value of dwelling $85,000
• B) dwelling limit of $75,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000
• C) dwelling limit of $90,000,replacement cost of dwelling $90,000,actual cash value of dwelling $90,000
• D) dwelling limit of $110,000,replacement cost of dwelling $110,000,actual cash value of dwelling $90,000
• E) dwelling limit of $120,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000

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Definitions:

Perceptual World

The perceptual world refers to an individual's subjective interpretation and understanding of the external environment through sensory input.

Motivational States

Psychological conditions that drive individuals to act towards a goal or fulfil a need.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Motor Movements

Actions resulting from the contraction of muscles, leading to movements of parts of the body.