Author Question: Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual ... (Read 79 times)

rachel9 · **on:** Jul 11, 2018

Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis.

He would like replacement cost coverage on his personal property. He contacted his agent who said, I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost. The written provision the agent was referring to is called a(n)
A) endorsement.
B) coinsurance clause.
C) binder.
D) deductible.

Question 2

Under the terms of Jenny's auto insurance policy, she must pay the first 500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny's auto insurance policy?

A) calendar-year deductible
B) waiting period
C) straight deductible
D) aggregate deductible