A nonparticipating policy will

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A nonparticipating policy will

A) provide a return of premium
B) provide tax advantages
C) not pay dividends
D) give policyowners special privileges

Answer: C) not pay dividends

Basic Principles

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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?

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