When Petie and Geri Adams Purchased a House in 1992,they

question 14

Essay

When Petie and Geri Adams purchased a house in 1992,they insured it with Goodfriend Insurance Co.This property insurance policy has a policy limit (face amount)of $125,000.That figure matched the fair market value of the house as of the time the Adams procured the policy.Generally due to the declining property values in the small town where the house was located,the house now has a fair market value of $101,000 as of August 1,1997.On that date,the Adams' house was completely destroyed by fire,a covered peril.The Adams have filed a claim and proof of loss with Goodfriend.If the policy at issue is a valued policy,how much are the Adams entitled to collect from Good friend? Why that amount? If the policy at issue is an open policy,how much are the Adams entitled to collect? Why that amount?

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Definitions:

Deductive

A logical process wherein a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Value-Laden

Describes concepts, arguments, or statements that are influenced by personal values, biases, or cultural norms, often implying a lack of objectivity.

Inductive Logic

A method of reasoning in which general principles are derived from specific observations.

Deductive Logic

Deductive logic is a method of reasoning from one or more statements (premises) to reach a logically certain conclusion, operating from the general to the specific.