Question

In what situation is the 'Agreed Value' principle adopted in insurance?

a.

When the value of the subject matter is easily estimated.

b.

When the property's value is overestimated.

c.

When the value of the subject matter cannot be easily estimated at the time of loss.

d.

When the property is lost during shipping.

Answer: (c).When the value of the subject matter cannot be easily estimated at the time of loss. Explanation:The 'Agreed Value' principle is adopted when the value of the subject matter cannot be easily estimated at the time of loss.

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Q. In what situation is the 'Agreed Value' principle adopted in insurance?

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