Question

11. Sally did not want to worry about coinsurance in her new insurance policy, but wanted the insurance to represent a fair valuation for her property. What provision did Sally most likely use to do this?

(Choose from the following options)
1. Inflation guard
2. Agreed value
3. Market value
4. Stated amount

Answer 1

Sally most likely used the agreed value provision to ensure fair valuation for her property and avoid worrying about coinsurance in her insurance policy.

Step-by-step explanation:

Sally most likely used the agreed value provision to ensure that her insurance represented a fair valuation for her property and to avoid worrying about coinsurance in her new insurance policy. The agreed value provision allows the policyholder and the insurance company to agree upon the value of the insured property, which is then used as the basis for determining the coverage amount. This provision ensures that Sally's property is adequately covered and eliminates the need for coinsurance.