Susana, the insured contacts her broker stating that her 2020 vehicle is now paid off and no longer has a lien on it. Susana wants to know if this will change her premium. What would be the Broker's next steps? OA) Inform Susana that the insurance company will remove the OPCF 5A from her policy and a copy of the revised policy will be sent. OB) Ask Susana for the release of interest so the OPCF 23A can be removed. Explain that she now has the option of removing physical damage from the vehicle. OC) Inform Susana that the insurance company will remove the OPCF 20 from her policy, but this does not impact the premium. OD) Inform Susana to leave the lienholder on the policy, as there will be no change in the premium.
Susana, the insured contacts her broker stating that her 2020 vehicle is now paid off and no longer has a lien on it. Susana wants to know if this will change her premium. What would be the Broker's next steps? OA) Inform Susana that the insurance company will remove the OPCF 5A from her policy and a copy of the revised policy will be sent. OB) Ask Susana for the release of interest so the OPCF 23A can be removed. Explain that she now has the option of removing physical damage from the vehicle. OC) Inform Susana that the insurance company will remove the OPCF 20 from her policy, but this does not impact the premium. OD) Inform Susana to leave the lienholder on the policy, as there will be no change in the premium.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Susana, the insured contacts her broker stating that her 2020 vehicle is now paid off and no longer has a lien on it.
Susana wants to know if this will change her premium. What would be the Broker's next steps?
OA) Inform Susana that the insurance company will remove the OPCF 5A from her policy and a copy of the
revised policy will be sent.
OB) Ask Susana for the release of interest so the OPCF 23A can be removed. Explain that she now has the
option of removing physical damage from the vehicle.
OC) Inform Susana that the insurance company will remove the OPCF 20 from her policy, but this does not
impact the premium.
OD) Inform Susana to leave the lienholder on the policy, as there will be no change in the premium.
Transcribed Image Text:A building worth $500,000 is insured for $300,000 with a 90% co-insurance clause. A fire causes $200,000 damage.
How much does the insurer pay?
OA) $100,000.00.
OB) $120,000.00.
OC) $200,000.00.
OD) $133,333.33.
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