An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of

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An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of

a) rebating
b) coercion
c) fraud
d) twisting

Answer: c) fraud

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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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