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If Property Covered by a Valued Policy Is Totally Destroyed

Question 38

Multiple Choice

If property covered by a valued policy is totally destroyed:


A) the insured can recover the face amount of the policy only if it does not exceed the fair market value of the building.
B) the insured can recover only the fair market value of the building.
C) the insured can recover the face amount of the policy regardless of the fair market value of the building.
D) the insured can recover the fair market value of the property at the time it was destroyed,up to the limits stated in the policy.

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