Under a Replacement Cost Policy, the Loss of a $600

question 24

Multiple Choice

Under a replacement cost policy, the loss of a $600 item from fire damage, with an estimated life of five years that was purchased three years ago and has a replacement cost of $900 would result in a payment from the insurance company of

• A)$600.
• B)$900.
• C)$240.
• D)$360.

---

Definitions:

Participation

Actively taking part in an activity or process, especially one that involves decision-making or governance.

Stock Certificates

Stock certificates are physical documents that evidence ownership of shares in a corporation.

Physical Stock Certificate

A tangible document issued by a corporation that certifies the ownership of shares in the corporation by a shareholder.

Shareholder's Ownership

The holding of shares in a company by individuals or entities, providing them ownership interests and possibly dividends.