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:

Control Over

The authority or power to regulate, direct, or dominate a situation, process, or entity.

Technological Advances

Innovations and improvements in technology that increase productivity and potentially lead to economic growth and development.

Specialized Resources

Resources uniquely suited for a specific type of production or service, enhancing efficiency.

Avoids Taxes

Strategies or actions taken by individuals or companies to minimize their tax liability legally or illegally.