If You Wanted to Obtain an Endorsement That Automatically Updates

question 72

Multiple Choice

If you wanted to obtain an endorsement that automatically updates the level of property coverage based on an index of replacement costs that continually updates the cost of building a home,you would ask for a(n)

• A)inflation guard.
• B)automatic adjustment policy.
• C)replacement cost index.
• D)continual adjustment policy.
• E)none of the above.

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Definitions:

Hyperinflation

Economic situation characterized by soaring prices.

Soaring Prices

A situation where the prices of goods and services rise rapidly and to unusually high levels.

Economic Situation

The state of economic conditions within a region, country, or the globe, encompassing factors like growth rates, employment, inflation, and markets.

Seasonal Unemployment

Joblessness of workers in a seasonal industry.