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:

Source 1-Destination 2

An indicator or label used in logistics and supply chain management to denote the transfer of materials or goods from one location (source) to another (destination).

Objective Function

A mathematical expression in linear programming that maximizes or minimizes some quantity (often profit or cost, but any goal may be used).

Largest Possible Amount

The maximum quantity or extent something can reach or contain.

Linear Programming Problems

Mathematical modeling techniques used to achieve the best outcome, such as maximum profit or lowest cost, within a defined set of constraints.