Question

A protection that insures property that cannot be covered by specific insurance because the property is constantly changing in either value or location is referred to as a(n):

a. floater policy
b. collision insurance
c. annuity
d. coinsurance

Answer 1

A floater policy is a type of insurance that covers property which has a value or location that frequently changes, providing flexibility not found in other specific insurance types.

Step-by-step explanation:

The protection that insures property which cannot be specifically covered due to its constantly changing value or location is referred to as a floater policy. A floater policy is particularly useful for covering high-value items that move locations, such as jewelry, cameras, or art pieces. Unlike other insurances like health insurance, car insurance, house/renter's insurance, or life insurance, which are tied to specific types or aspects of coverage, a floater policy adapts to the fluctuating risks associated with the portable property. Floater policies are typically used to insure items such as jewelry, fine art, or musical instruments, which have a high value and may be frequently moved or transported.