The insurance required to meet coinsurance is: 80% × face value 80% × replacement value 80%...

The insurance required to meet coinsurance is:

80% × face value

80% × replacement value

80% × actual loss

Insurance carried divided by 80%

None of these

Solutions

Expert Solution

The answer is "80% * replacement value".

This is because amount payable = (insurance carried/insurance required)*replacement cost

Insurance required = 80% of the replacement cost

jeff jeffy answered 1 year ago

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