Exit RIBO-LEVEL-1 RIBO Level 1 Entry-Level Broker
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Q1 Single choice

In the event of a theft of a three-year-old laptop, the insurer offers a settlement based on "Actual Cash Value" (ACV) because the insured does not have a Replacement Cost endorsement.

How is this settlement amount determined?

  • A

    The insurer pays the original price the insured paid three years ago.

  • B

    The insurer pays the cost of a brand-new laptop of the same quality today.

  • C

    The insurer pays the current cost to replace the laptop minus a deduction for depreciation.

  • D

    The insurer pays the amount the insured thinks the laptop is worth.

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