If Property Covered by a Valued Policy Is Totally Destroyed

question 11

Multiple Choice

If property covered by a valued policy is totally destroyed, the _____.

• A) insured can recover the face amount of the policy only if it does not exceed the fair market value of the property
• B) insured can recover only the fair market value of the property
• C) insured can recover the face amount of the policy regardless of the fair market value of the property
• D) insured can recover the fair market value of the property at the time it was destroyed, up to the limits stated in the policy

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Definitions:

Time Urgency

The feeling of being rushed or having an insistent need to complete tasks in a limited timeframe, often associated with stress and pressure.

Hostility

Aggressive behavior or attitudes displayed towards others, often characterized by anger, resentment, or antagonism.

Optimistic Bias

The tendency to believe that one is less likely to experience negative events compared to others.

Heart Disease

A broad category of diseases that affect the heart's structure and function, leading to a range of health complications.