1 Which one (1) of the following statements is true about coverage for loss or damage caused by an earthquake?OA) It is not available under a property insurance policy.OB) It is automatically included under the extended perils of a property policy.OC) It is an "Act of God" and not insurable.OD) It is a peril that may be covered under a property policy by endorsement for an additional premium. The contents of a building are insured for $200,000 subject to 80% co-insurance. The policy contains a $500deductible clause. A fire causes $40,000 damage to contents. The full replacement value is found to be $300,000. Howmuch will the policy pay?OA) $32,833.00OB) $39,500.00OC) $33,333.00OD) $26,166.00

Insurance is a type of contract in which the insurer re-imburses the poilyc holders of the financial…

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