Which of the Following Characterizes a Coinsurance Clause with Regard

question 63

Multiple Choice

Which of the following characterizes a coinsurance clause with regard to property insurance?

• A)It prohibits the insured from obtaining an amount of insurance which would be less than the coinsurance percentage multiplied by the fair market value of the property.
• B)It encourages the insured to be more careful in preventing losses since the insured is always at least partially at risk when a loss occurs.
• C)It permits the insured to receive an amount in excess of the policy amount when there has been a total loss and the insured carried the required coverage under the coinsurance clause.
• D)It will result in the insured sharing in partial losses when the insured has failed to carry the required coverage under the coinsurance clause.

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Definitions:

Testing

The process of examining and evaluating something to determine its condition, quality, or efficiency through various methods and techniques.

Misfire

An engine condition where a cylinder fails to ignite its fuel/air mixture properly, leading to performance issues.

MAP Sensor

Stands for Manifold Absolute Pressure Sensor, which measures the air pressure within the intake manifold to adjust fuel delivery and engine load calculations.

Knock Sensor

A device in an internal combustion engine that detects engine knock or pinging, which is a symptom of pre-detonation, and signals the control unit to adjust the ignition timing.