Financial Risks Unit Test

Question

13 of 2013 of 20 Items

Question
What is the 80% rule?(1 point)
Responses

Insurance companies will require the policy holder to cover 80% of the deductible up front.
Insurance companies will require the policy holder to cover 80% of the deductible up front.

Banks holding mortgages require the policy holder to embed 80% of the premiums into the mortgage.
Banks holding mortgages require the policy holder to embed 80% of the premiums into the mortgage.

Insurance companies require that 20% of the replacement cost of the property be set as the deductible.
Insurance companies require that 20% of the replacement cost of the property be set as the deductible.

Insurance companies will require the policy holder take 80% of the replacement cost of the entire property in coverage, or they will reduce the reimbursements by a proportionate amount.
Insurance companies will require the policy holder take 80% of the replacement cost of the entire property in coverage, or they will reduce the reimbursements by a proportionate amount.
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Answer 1

The correct answer is: Insurance companies will require the policy holder to cover 80% of the deductible up front.