With an adjustable rate mortgage, the mortgage rate can increased or decreased pursuant to the terms of a loan.

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With an adjustable rate mortgage, the mortgage rate can increased or decreased pursuant to the terms of a loan.

A. True
B. False

Answer: A. True

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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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