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Commerce · Q91

Insurance

Graduate and Post Graduate · Commerce · question 91

Q91

_________ is the maximum amount an insurance company will pay if an insured asset is deemed a total loss.

A.
Insurance value
Answer
B.
Actual value
C.
Replacement value
D.
Guaranteed Replacement Cost

Answer: Option A

Solution

Answer: Option A
Solution:
Insurance value is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. It is the maximum amount an insurance company will pay if an insured asset is deemed a total loss. The asset's insured value can either be its replacement cost or its market value, depending on the insurance policy.