If You Have Two Insurance Policies on the Same Property,the

question 84

Multiple Choice

If you have two insurance policies on the same property,the ____ clause explains how the two insurance companies will share the loss.

• A)principle of indemnity.
• B)co-insurance clause.
• C)other-insurance clause.
• D)companies' insurable interest.
• E)principle of subrogation.

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Definitions:

Framing Effect

The cognitive bias where people react differently to a particular choice depending on how it is presented, such as a loss or gain.

High-End Retailers

Retail outlets that focus on selling premium products and services, often associated with luxury or top-quality items.

Architecture

The art and science of designing and constructing buildings and other physical structures, focusing on aesthetics, functionality, and the spatial experience.

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk, where the probabilities of outcomes are known.