The replacement cost of a home covered under the HO-3 policy is $100,000. Assume the home is insured for $50,000 and a $10,000 loss occurs (replacement cost). Also assume depreciation is set at 10 percent. Assume that there is no deductible
How much will the insured recover if repaired?
A) $9,000
B) $10,000
C) $8,000
D) $6,250
A
You might also like to view...
Why is it difficult for policymakers to set policy based on the value of the unemployment rate relative to the natural rate of unemployment?
What will be an ideal response?
Explain the concept of positioning for competitive advantage
What will be an ideal response?
The student body of a large university consists of 60% female students. A random sample of 8 students is selected. What is the probability that among the students in the sample exactly two are male?
A. 0.0896 B. 0.2090 C. 0.0413 D. 0.0007
Teri, Doug, and Brian are partners with capital balances of $20,000, $30,000, and $50,000 respectively. They share income in the ratio of 3:2:1. Income Summary with a debit balance of $30,000 is closed to the capital accounts. Doug withdraws from the partnership. How much cash does he get upon withdrawal?
A) $30,000 B) $20,000 C) $40,000 D) $24,000