Property Insurance Should Correspond to the Actual Value of the Property

question 1

Multiple Choice

Property insurance should correspond to the actual value of the property for all of the following reasons except

• A) if the property is insured for more, the insured will pay too high a premium.
• B) no insurance means no compensation for loss.
• C) if the property is insured for less, there is a danger of being a co-insurer.
• D) if the property is insured for more, there will be no compensation for loss.
• E) if the property is insured for less, the insured will only receive partial compensation.