help When completing a "Proof of Loss" form following a claim, the insured is required to inventory not only the damagedproperty but, if required, the undamaged property as well, what is the reason for this?OA) It prevents the insured from exaggerating the value of the property damaged or destroyed.OB) It permits the insurer to determine the proportion of the total value represented by the damaged property.OC) It prevents the insured from becoming a co-insurer.OD) It is required to provide statistics as to the number of total losses versus partial losses. OA) Deny the claim as the fire is not an insured peril.OB) Deny the claim due to material change in risk in the occupancy.4OC) Cover the loss as the type of tenant does not matterOD) Cover the loss, but subrogate against the students insurance policy.LanguagerGo To Next99An insured requests to add a rental property onto their Homeowner's policy and tells their Broker that a family will bemoving in. Two months later, there is a fire resulting in a total loss of the rental property. Upon inspection, the claimsadjuster discovers that the property was rented to four students instead. How will the policy respond to the loss?English Français100Font Size:

Insurance against damage involves securing coverage for potential losses to property, belongings, or…

Answered: When completing a "Proof of Loss" form…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 24CYBK

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Similar questions

It refers to the right of mortgagor to redeem the mortgaged property after his default of the performance of his obligation by paying the secured obligation in order to prevent the public sale of his mortgaged property. a. Equity of redemption b. Right of redemption c. Right of preemption d. Equity of preemption
Give typing answer with explanation and conclusion Property insurance protects you from financial losses resulting from the damage to or destruction of your property or possessions. True False
If a loss from sale or exchange of property between related parties is disallowed and the property is subsequently sold to an unrelated party, a.The disallowed loss is lost forever. b.The disallowed loss may be used if there is a further loss on the subsequent sale. c.The unrelated party may claim the loss previously disallowed. d.An amended return may be filed to claim the loss previously disallowed. e.The disallowed loss may be used to offset gain on the subsequent sale.
Which of the following transactions would most likely be a deductible repair under s 25-10? a. Repair of damage to property that existed at the time of purchase but was not known to the purchaser. b. Repainting a rental property after purchase but before tenants move in. c. Repainting a rental property in-between tenants vacating and new tenants moving in. d. Mechanical repairs to a vehicle that was not drivable at the time of purchase.
Fire loss sustained on business asset which was insured is deductible- a. In the period of loss b. In the period of insurance settlement c. In the period deemed practical by the taxpayer d. It is not deductible because the lost asset was insured
Which of the following is not a possible limitation on the deduction of a personal casualty loss? The lesser of the fair market value of the property or the adjusted basis at the time of the loss A100 floor for each casualty event A10 percent of AGI floor for all casualty losses during the year A personal casualty not associated with a federally declared disaster All of the above are possible limitations on a personal casualty loss
Roundhouse Tools has several potential warranty claims as a result of damaged tool kits. Review each situation and (1) determine the treatment for each situation as probable and estimable, probable and inestimable, reasonably possible, or remote; (2) determine what, if any, recognition or note disclosure is required; and (3) prepare any journal entries required to recognize a contingent liability. A. Roundhouse Tools has several claims for replacement of another tool kit not listed as one of their damaged tool kits. The honored warranty for these tool kits is not likely but is not remote. It is possible. B. A pending warranty claim has been received with the projected cost to be $450. Roundhouse Tools believes honoring that warranty claim is likely to occur and that figure is reasonably estimated. C. Roundhouse Tools believes other potential warranties may have to be honored outside of the warranty period, but this is unlikely to occur. D. Warranty replacements will cost the company a percentage of sales for the period. This amount allotted for warranty replacements cannot be reasonably estimated but is likely to occur.
Which of the following factors cannot be used to determine an insurer's limit of liability on property coverage? O A. Actual cash value Replacement cost Salvage value Policy limits OB. O C. D. Whiteboard
The amount of the casualty loss deduction for personal use property depends on whether the property is partially or completely destroyed. True or false
Which of the following statements is correct about perils in property insurance policies? An (HO-2) form provides coverage for more perils than a (HO-3) Form. a Peril is defined as the cause of a loss A peril increases the chance of a loss a property insurance policy must contain a list of all cover perils
One purpose of casualty policy’s condition section is to list the property that is to be covered list the perils that are to be insured against provide for extension of coverage specify the insured responsibilities in the event of loss
Which of the following is NOT a contingent liability? a. Pending law suit for property damage b. Product warranty c. Discounted note receivable d. Pending law suit for slander

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