Final answer:
A person would purchase a fixed or agreed value policy to be guaranteed a certain settlement amount in the event of a total loss.
Step-by-step explanation:
The type of policy a person would purchase if they wanted to be guaranteed a certain settlement amount in the event of a total loss is called a fixed or agreed value policy. This type of policy specifically states the amount that will be paid out in the event of a total loss, regardless of the actual value of the property.
For example, if someone owns a vintage car that is insured under a fixed value policy for $50,000 and the car is completely destroyed, they would receive the full $50,000 as the settlement amount, even if the car's market value was lower.
This type of policy provides peace of mind for the policyholder, as they know exactly how much they will receive in the event of a total loss.