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With respect to the HO dwelling coverage, select the most accurate statement.

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With respect to the HO dwelling coverage, select the most accurate statement.

With respect to the HO dwelling coverage, select the most accurate statement.
A) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay the replacement cost minus the deductible, but no more than the policy limit.
B) If the amount of insurance carried divided by 80% of the replacement cost equals 1 or greater, the company will pay replacement cost minus the deductible.
C) If the amount of insurance divided by 80% of the replacement cost equals 1 or greater, the company will multiply that result by the loss, subtract the deductible, then pay that amount.
D) The insurer must only pay actual cash value for any loss unless the insured has insurance equal to 100% of the replacement cost of the property.

Textbook

Introduction to Risk Management and Insurance

Edition: 10^th

Authors: Dorfman, Cather

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