Reference no: EM133042492

Questions -

Q1) Andrew purchased his home in 2009 for $150,000. At the time he took purchased a homeowners policy with a $125,000 limit and an 80% coinsurance requirement. In 2015 Andrew's home incurs storm damage. The cash value of the damaged property is $50,000, and the repair costs are $75,000. At the time of the loss, Andrew's house had appreciated to $200,000 and he has maintained the same policy for the entire time that he has owned his home. How much compensation will Andrew receive from his insurer for the loss?

(A) $58,594

(B) $75,000

(C) $50,000

(D) $16,406

Q2) An "open perils" policy means that the perils covered must be explicitly listed in the policy in order to be covered. (True or False)

Q3) A "proof of loss" form must include all of the following EXCEPT:

(A) changes in title or occupancy that occurred during the policy period

(B) a list of liens that have been applied to the property

(C) identification of any other insurance which may be available to cover the loss

(D) a copy of the deed for the property