In preparation for installing a new alarm system at a business location, Risk Manager Tony Marcelli has consulted with his insurance agent to make sure that appropriate property and liability coverages are in place during installation. Also, Tony wants to be sure the insurer provides the proper insurance credit for the new alarm system. Tony's actions described above are part of which one of the following steps of the risk management process?

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In preparation for installing a new alarm system at a business location, Risk Manager Tony Marcelli has consulted with his insurance agent to make sure that appropriate property and liability coverages are in place during installation. Also, Tony wants to be sure the insurer provides the proper insurance credit for the new alarm system. Tony's actions described above are part of which one of the following steps of the risk management process?

A. Examining the feasibility of the risk management technique.

B. Selecting the appropriate risk management technique.

C. Implementing the selected risk management technique.

D. Monitoring results of the risk management technique.

Answer: C

AINS Chapter 7

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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