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20 questions sampled from our Property & Casualty bank. AI explanations shown after each answer.
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Question 1 of 20
0 correct so far
National-PC-I Property Policies
medium
A homeowner adds ISO endorsement HO 04 90 to her HO-3 policy. Her five-year-old laptop is destroyed in a fire. Which settlement method applies to the laptop under this endorsement?
A
Actual cash value β depreciation is deducted as it would be under the base HO-3
B
Replacement cost β cost to replace with a new laptop of like kind and quality, without deduction for depreciation
C
Agreed value β the amount specified on the endorsement schedule at policy inception
D
Functional replacement cost β cost to replace with a less expensive modern equivalent
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