Henderson Owned a Concrete Block Building Valued at $20,000

question 45

True/False

Henderson owned a concrete block building valued at $20,000. Because it was virtually fireproof, he insured it for only $10,000 under a policy of insurance which contained an 80% co-insurance clause. Some time later, the building was damaged by fire. Assuming that the fire completely destroyed the building, Henderson would only be entitled to claim for $10,000 under his insurance policy.

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Definitions:

Apples

A common fruit that is edible, coming in various varieties and used both for eating raw and in cooking.

Bananas

A long, curved fruit with a soft, edible inner part and a yellow skin when ripe, commonly eaten as a snack or used in cooking and baking.

Utility Function

In economics, a representation of preferences over a set of goods and services by assigning values, indicating the level of satisfaction or utility derived from them.

Nuts

Edible seeds enclosed in a hard shell, often used as a source of nutrients and energy.