An Inflation Guard Endorsement on a Homeowner's Insurance Policy

question 2

Multiple Choice

An inflation guard endorsement on a homeowner's insurance policy

• A)periodically increases the face amount of dwelling protection to reflect changes market value.
• B)ensures that insurance premiums will not rise faster than the general price level.
• C)ensures that insurance premiums will not rise faster than the average price of a new home.
• D)indexes copayments to the cost of living.

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Definitions:

Selling Price

The amount of money charged for a product or service, or the sum for which something is offered for sale.

Profit Increase

A financial metric indicating an augmentation in a company's earnings over a specific period.

Unit Sales Price

The amount of money charged for a single unit of a product or service, determining the revenue per unit sold.

Unit Variable Cost

The cost that varies directly with the production output, altering with the volume of production.