Which of the following is an example of the insured's consideration?

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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

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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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