When fire struck and destroyed a substantial portion of the contents of Mark's home, the...
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When fire struck and destroyed a substantial portion of the contents of Mark's home, the insurance company explained that his policy would reimburse him for his loss based on the actual cash value of the items. With this type of policy, which of the following statements are true?
1. The claim settlement amount will not include a deduction for depreciation on each item.
2. The claim settlement amount will include a deduction for depreciation on each item.
3. Mark may use the funds from the settlement any way he wishes, and is under no obligation to actually replace the items.
4. Mark will receive reimbursement only if he repairs or replaces an item with another one of similar quality.
Question 20 options:
1 and 2
1 and 4
2 and 3
3 and 4
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