Treating risk by purchasing insurance is an example of what type of risk management?
Treating risk by purchasing insurance is an example of what type of risk management?
A) Avoidance.
B) Reduction.
C) Retention.
D) Transfer.
Answer: D
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
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