Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

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Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?

a. standard risk pays a higher premium than a substandard risk
b. standard risk requires extra rating
c. standard risk is also known as high exposure risk
d. standard risk is representative of the majority of people

Answer: d. standard risk is representative of the majority of people-average risk

Life Insurance

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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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