Renee is risk manager of XYZ Company.She purchased a Commercial Package Policy for her company and added one optional coverage.This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations.This provision is known as

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The provision being described is the agreed value coverage, which suspends the coinsurance clause and establishes a new agreement for covering losses based on the proportion of the limit of insurance purchased to a specified value in the policy declarations. The other options listed (waiver of inventory coverage, inflation guard coverage, and replacement cost coverage) do not match the description given.

Renee Is Risk Manager of XYZ Company