Which of the Following Is a True Statement

question 55

Multiple Choice

Which of the following is a true statement?

• A)A casualty loss can only occur from storm damage.
• B)Personal casualty losses can only be deducted to the extent that aggregate casualty losses exceed 10 percent of AGI after applying a $100 per incident deduction.
• C)Individual casualty losses are only deductible if each individual loss exceeds $5,000.
• D)Uninsured thefts of personal assets are not included with casualty losses.
• E)All of the above are truE.Casualties are thefts and any sudden unexpected events such as storms, fires, or shipwrecks and individual casualty losses are subject to a per casualty floor in addition to an aggregate floor limitation of 10 percent of AGI.

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Definitions:

Availability Heuristic

The availability heuristic is a cognitive bias wherein individuals judge the likelihood of events based on their ability to easily recall examples, rather than on objective information or statistical probability.

Homeowners' Policies

Insurance contracts that offer property and liability coverage to individuals owning homes, protecting against various perils.

Insurance Salespeople

Professionals who specialize in selling insurance policies to protect individuals and businesses from financial loss.

Representativeness Heuristic

A cognitive shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.