Fundamentals of Insurance - Practice Exam 12 QUESTIONS AND ANSWERS RATED A+ 2023|2024 UPDATE

Fundamentals of Insurance - Practice Exam 12 QUESTIONS AND ANSWERS RATED A+ 2023|2024 UPDATE A building valued at $120,000 is insured for $30,000 and there is an 80% co-insurance clause on the policy. The building was totally destroyed by fire last weekend. The insured would receive a settlement of: a. 7,000 b. 12,000 c. 30,000 d. 37,5000 - correct answer c. 30,000 The reinstatement clause contained in most policies of commercial property insurance provided that: a. The insureds shall have as much insurance on the property after an insured loss as they had immediately prior to it b. Coverage which is suspended due to a breach of policy conditions is automatically reinstated when that breach is corrected c. Coverage which has been terminated by the insurer may be re-instated at the request of the insured upon application to the insurer in writing d. Property lost or damaged shall be re-instated with equivalent property of like kind and quality - correct answer a. The insureds shall have as much insurance on the property after an insured loss as they had immediately prior to i