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

question 21

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. Henderson's failure to disclose the true value of the property to the insurer is misrepresentation and would allow the insurer to avoid paying anything to Henderson when the loss occurred.

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Definitions:

Personal Evaluation

An assessment of one's own abilities, characteristics, or performance, often in comparison to others or to personal standards.

Deterministic

The philosophical belief that all events, including moral choices, are completely determined by previously existing causes.

Psychodynamic

A psychological perspective that emphasizes unconscious psychological processes and contends that childhood experiences significantly influence adult personality.

Behavioural Theories

Theories that focus on explaining human behavior through observation and learning, rather than internal psychological processes.