Which of the following is an example of the insured's consideration?
Which of the following is an example of the insured's consideration?
A) Insurer's promise to pay benefits
B) A paid premium
C) Legal purpose
D) Intent
Answer: B) A paid premium
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