Jim and Mary are celebrating their 50th wedding anniversary and are on a worldwide cruise. They carry a DP-3 dwelling policy with a personal property limit of $50,000. While off the coast of Africa the ship catches fire and their property is completely destroyed. How much, if anything, will they collect?

Nothing

$5,000

Up to the personal property limit

$1,000 on a replacement cost basis

Answer: $5,000

Alabama Property and Casualty

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In an insurance contract, the applicant's "consideration" is the
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The voluntary relinquishment of a legal right is called
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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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