GFOA Exam CPFO Topic 8 Question 95 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 95
Topic #: 8

[All CPFO Questions]

If a building originally valued at $160,000 appreciates to $300,000 and is insured by an 80% coinsurance clause, then 80% of the value ($320,000) must be insured. If the building is still insured at only $160,000 and a $100,000 loss occurs, the loss would be:

A$ 40,000

B$50,000

C$44,000

D$60,000

Show Suggested Answer

Suggested Answer: C

by Rebecka at Aug 25, 2024, 07:28 AM

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Jerlene

1 days ago

I agree with Vivan, the loss would be $50,000.

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Vivan

4 days ago

I think the answer is B) $50,000.

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