What does the liberalization clause do to a property policy?

A) Eases the criteria for concealment or fraud.

B) Gives the insurer subrogation rights.

C) Broadens coverage.

D) Waives the premium in some situations.

Answer: C

Property

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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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