The reinstatement clause contained in most policies of commercial property insurance provides that: (1 mark) a) the insured shall have as much insurance on property after an insure... The reinstatement clause contained in most policies of commercial property insurance provides that: (1 mark) a) the insured shall have as much insurance on property after an insured loss as they had immediately prior to it. b) coverage which is suspended due to a breach of policy conditions is automatically re-instated when that breach is corrected. c) coverage which has been terminated by the insurer may be re-instated at the request of the insured upon application to the insurer in writing. d) property lost or damaged shall be re-instated with equivalent property of like kind and quality.
Understand the Problem
The question is asking about the provisions of the reinstatement clause in commercial property insurance policies. It provides multiple-choice options related to how coverage is managed after an insured loss or breach of policy conditions.
Answer
a) the insured shall have as much insurance on property after an insured loss as they had immediately prior to it.
The final answer is a) the insured shall have as much insurance on property after an insured loss as they had immediately prior to it.
Answer for screen readers
The final answer is a) the insured shall have as much insurance on property after an insured loss as they had immediately prior to it.
More Information
A reinstatement clause in insurance ensures that after a loss, the insured has the same level of coverage as before the loss. It's a common feature in commercial property insurance.
Tips
A common mistake is confusing reinstatement with replacement; reinstatement refers to restoring insurance coverage to its previous level.
Sources
- Reinstatement Clause in Insurance: Meaning and Examples - investopedia.com
- 3.9.6 The Reinstatement Clause - American Safety Council - course.uceusa.com
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