Question

f property under a Personal Floater risk is insured at a $5,000 valued basis, how much would the insured receive if the item is a total loss, the actual cash value is $4,000, and an auction is selling the same item for $3,500? A $3,500 B $4,000 less the deductible C $4,000 D $5,000

Answer 1

D. $5,000

Step-by-step explanation:

Based on the information given we were told that the amount of $5,000 valued basis was the amount in which Personal Floater risk is been insured, therefore in a situation where an item is been insured on a valued basis just like the Personal floater risk , this means that the amount insured will be the amount that the policy will pay for any loss that may occured.