Question

Terry is fully insured by his farm policy. When a tornado rips through Terry's farm, it destroys a barn with $15,600, a corral and two livestock chutes worth $6,200, and a light pole worth $400. How much indemnification can Terry expect to receive for this claim?

A. $22,050
B. $21,800
C. $22,200
D. $22,750

Answer 1

C. $22,200

Terry can expect to receive a total indemnification of $22,200 for the damages to his farm caused by a tornado, assuming full coverage by his farm policy without specific deductibles or limits.

Step-by-step explanation:

The question revolves around how much indemnification Terry can expect to receive for the damages caused by a tornado on his farm, under his farm policy. The damages are detailed as follows: a barn worth $15,600, a corral and two livestock chutes worth $6,200, and a light pole valued at $400. To calculate the total indemnification, we simply need to add up these values.

$15,600 (barn) + $6,200 (corral and chutes) + $400 (light pole) = $22,200

Therefore, Terry can expect to receive $22,200 for this claim. This assumes that the farm policy covers all these items in full and there are no deductibles or coverage limits that apply to specific items or to the incident as a whole.