If the value of the subject matter of insurance is 4000 dinars, the amount of insurance is 8000 dinars, and the actual value of the loss is 2000 dinars, then the compensation is equal Select one: a. 4000 dinars b. 200 dinars c. 400 dinars d. 2000 dinars

If the value of the subject matter of insurance is 4000 dinars, the amount of insurance is 8000 dinars, and the actual value of the loss is 2000 dinars, then the compensation is equal Select one: a. 4000 dinars b. 200 dinars c. 400 dinars d. 2000 dinars

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 47P

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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

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Question text If the value of the subject matter of insurance is 4000 dinars, the amount of insurance is 8000 dinars, and the actual value of the loss is 2000 dinars, then the compensation is equal Select one: a. 4000 dinars b. 200 dinars c. 400 dinars d. 2000 dinars

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