Multiple Choice
Use the following to answer questions:
Scenario: Flood Area
Suppose you own a home that is estimated to be worth $250,000. You live in a flood plain; as a result, the probability that you will lose your home to a flood is 30%.
-(Scenario: Flood Area) Look at the scenario Flood Area. Suppose an insurance company offers you flood insurance. Most likely this insurance would require a premium payment:
A) greater than $250,000.
B) greater than $75,000.
C) less than $15,000.
D) equal to $100,000.
Correct Answer:
Verified
Correct Answer:
Verified
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