Question

Which of the following s TRUE regarding loss settlement in a Jewelers Block?

a. Values of insured property is agreed upon at the policy inception and cannot change until the next policy period.
b. Historical or antique value is factored into the value of damaged property at the time of the loss.
c. It pays on an agreed value basis.
d. It will pay the least of AVC, the cost to restore, the cost to replace, or the lowest amount listed on the company's books

Answer 1

Other options such as factoring in historical value or paying the lowest of various valuations are not typically accurate descriptions of a Jewelers Block loss settlement. The correct option is C.

Step-by-step explanation:

Jewelers Block Loss Settlement

The correct statement regarding loss settlement in a Jewelers Block policy is that it pays on an agreed value basis. This means option 'c' is correct: It pays on an agreed value basis. When a loss occurs, the value of the insured item is typically predetermined at the policy inception.

This agreed value is the amount that will be paid out in the event of a claim, regardless of the current market value or replacement cost.

This type of settlement avoids the need for valuation at the time of loss and is beneficial in cases where the value of jewelry can fluctuate.

Options 'a', 'b', and 'd' are not typically true regarding Jewelers Block loss settlement.

Values can sometimes be adjusted via endorsements during the policy period, historical or antique value may not necessarily be factored unless it's a part of the agreed value, and the payment is not usually the least of the listed criteria but rather the agreed value. The correct option is C.