Author Question: Janice purchased a living room set for 1,000 and insured this furniture on an actual cash value ... (Read 72 times)

rosent76

  • Hero Member
  • *****
  • Posts: 516
Janice purchased a living room set for 1,000 and insured this furniture on an actual cash value basis.
 
  Two years later the living room set was destroyed by a covered peril. At the time of loss, the property had depreciated in value by 25 percent. The replacement cost of the furniture at the time of loss was 1,200. Assuming no deductible, how much will Janice receive from her insurer?
  A) 900
  B) 950
  C) 1,000
  D) 1,200

Question 2

Melody's car was damaged when another driver ran a stop sign and hit her car. Melody decided to collect from her own insurer and to let her insurer recoup the loss payment from the negligent driver who hit her.
 
  What fundamental legal principle is illustrated in this scenario?
  A) the principle of utmost good faith
  B) the principle of insurable interest
  C) the principle of subrogation
  D) the principle of reasonable expectations



cswans24

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

Answer: A

Answer to Question 2

Answer: C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

For a complete list of videos, visit our video library