The inventory at Frank’s business fluctuates. Frank’s property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory. Last period, Frank reported $200,000 when he value was really $400,000. Shortly after filing report, when the value was $500,000, the inventory was destroyed. How much will Frank’s insurer pay, assuming no deductible?

Insurance

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The inventory at Frank’s business fluctuates. Frank’s property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory. Last period, Frank reported $200,000 when he value was really $400,000. Shortly after filing report, when the value was $500,000, the inventory was destroyed. How much will Frank’s insurer pay, assuming no deductible?

Options

A) nothing, as underreporting voids coverage
B) $200,000
C) $250,000
D)$400,000

Answer: C

The above question The inventory at Frank’s business fluctuates. Frank’s property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory. Last period, Frank reported $200,000 when he value was really $400,000. Shortly after filing report, when the value was $500,000, the inventory was destroyed. How much will Frank’s insurer pay, assuming no deductible?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.