Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?

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Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?

a) Standard risk
b) Preferred risk
c) Unacceptable risk
d) Substandard risk

Answer: d) Substandard risk

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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?

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? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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