Which of the Following Statements Best Describes the 80 Percent

question 28

Multiple Choice

Which of the following statements best describes the 80 percent rule?

• A)Your home is covered for 80 percent of its original value,regardless of replacement cost.
• B)Your home is covered for replacement cost,provided the total premiums paid are less than 80 percent of the outstanding premiums due.
• C)Replacement cost coverage is only effective if your home is insured for at least 80 percent of its replacement cost.
• D)Your house cannot be replaced if its replacement cost is less than 80 percent of assessed market value.
• E)none of the above

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Definitions:

Customer Departmentalization

The arrangement of jobs around the needs of various types of customers.

Sales Account

A record or agreement defining the relationship and transactions between a buyer and a seller, often including terms of sale, credit limits, and purchase history.