If an Insured Makes a Claim for Property Damage and the Insurer

question 90

True/False

If an insured makes a claim for property damage and the insurer offers a payout lower than what the insured believes the property was worth, the insured can demand an appraisal under the contract's antilapse clause.

---

Definitions:

Marginal Rate of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of utility.

Good X

A symbolic term often used in economics to represent any generic commodity or product under consideration for analysis.

Units

Measurements or quantities ascertained by established standards used for trading, scientific experiments, and other purposes.

Utility Function

Refers to the model used by economists to estimate the level of utility or satisfaction a consumer derives from the consumption of goods and services, highlighting consumer preferences.