A situation in which there is ONLY a chance of loss or no loss is a
A situation in which there is ONLY a chance of loss or no loss is a
A) pure risk
B) particular risk
C) speculative risk
D) fundamental risk
Answer: A) pure risk
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