What does the insurance term "indemnity" refer to?
What does the insurance term "indemnity" refer to?
A) Make whole
B) Unequal consideration
C) Law of large numbers
D) Competent parties
Answer: A) Make whole
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