Additional funds collected by a lender to pay hazard insurance and taxes are held in

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Additional funds collected by a lender to pay hazard insurance and taxes are held in

A. A MAHT Account
B. A trust Account
C. An operating Account
D. An escrow Account

Answer: D. An escrow Account

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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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