In settlement of a loss, an insurer recognizes the replacement cost of the property, less depreciation, by considering the condition of the property immediately before the damage, its resale value and normal life expectancy and then pays the loss based upon the figure so determined. What is the insurance term that best describes this? OA) Co-insurance. OB) Subrogation. OC) Arbitration. OD) Actual Cash Value.
In settlement of a loss, an insurer recognizes the replacement cost of the property, less depreciation, by considering the condition of the property immediately before the damage, its resale value and normal life expectancy and then pays the loss based upon the figure so determined. What is the insurance term that best describes this? OA) Co-insurance. OB) Subrogation. OC) Arbitration. OD) Actual Cash Value.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
help asap
Transcribed Image Text:In settlement of a loss, an insurer recognizes the replacement cost of the property, less depreciation, by considering the condition
of the property immediately before the damage, its resale value and normal life expectancy and then pays the loss based upon
the figure so determined. What is the insurance term that best describes this?
OA) Co-insurance.
OB) Subrogation.
OC) Arbitration.
OD) Actual Cash Value.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education