BUSFIN 3300 Ch 9 Questions with Correct Answers
Actual Cash Value (ACV) Correct Answer-replacement cost minus
depreciation
fair market value Correct Answer-the price a willing buyer would pay a
willing seller in a free market
broad evidence rule Correct Answer-the determination of actual cash
value should include all relevant factors an expert would use to
determine the value of the property
Exceptions to the Principle of Indemnity Correct Answer-valued policy,
valued policy laws, replacement cost insurance, life insurance
Principle of Insurable Interest Correct Answer-The insured must be in a
position to lose financially if a covered loss occurs
subrogation Correct Answer-substation of the insurer in place of the
insured for the purpose of claiming indemnity from a third party for a
loss covered by insurance
Principle of Utmost Good Faith Correct Answer-A higher degree of
honesty is imposed on both parties to an insurance contract than is
imposed on parties to other contracts
Actual Cash Value (ACV) Correct Answer-replacement cost minus
depreciation
fair market value Correct Answer-the price a willing buyer would pay a
willing seller in a free market
broad evidence rule Correct Answer-the determination of actual cash
value should include all relevant factors an expert would use to
determine the value of the property
Exceptions to the Principle of Indemnity Correct Answer-valued policy,
valued policy laws, replacement cost insurance, life insurance
Principle of Insurable Interest Correct Answer-The insured must be in a
position to lose financially if a covered loss occurs
subrogation Correct Answer-substation of the insurer in place of the
insured for the purpose of claiming indemnity from a third party for a
loss covered by insurance
Principle of Utmost Good Faith Correct Answer-A higher degree of
honesty is imposed on both parties to an insurance contract than is
imposed on parties to other contracts
