Author Question: Frank's property insurance requires periodic reporting of inventory values. Frank believes he can ... (Read 53 times)

imowrer · **on:** Jul 11, 2018

Frank's property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory.

Last period, Frank reported 200,000 when the value was really 400,000. Shortly after filing the report, when the value was 500,000, the inventory was destroyed. Ignoring any deductible, how much will Frank's insurer pay?
A) nothing, as underreporting voids coverage
B) 200,000
C) 250,000
D) 400,000

Question 2

A firm wishing to insure a single shipment of merchandise sent by a common carrier would purchase a(n)

A) annual transit policy.
B) trip transit policy.
C) bailee's liability policy.
D) equipment floater.