Author Question: XYZ Company insured its building on a replacement cost basis for 450,000 under a property insurance ... (Read 146 times)

natalie2426 · **on:** Jul 11, 2018

XYZ Company insured its building on a replacement cost basis for 450,000 under a property insurance policy that included an 80 percent coinsurance clause.

The building had a replacement cost of 500,000 when it sustained a 50,000 loss. How much will XYZ Company receive from its insurer, assuming no deductible applies?
A) 42,500
B) 45,000
C) 50,000
D) 56,250

Question 2

Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy.

Under terms of the policy, a period of time must pass between when the injury occurred and when the insurer begins to replace lost earnings. This time period is called a(n)
A) grace period.
B) enrollment period.
C) probationary period.
D) elimination (waiting) period.