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Tara Operates a Small Computer Design Business

Question 6

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Tara operates a small computer design business.Her primary asset is her computer system,which she bought four years ago for $10 000.She bought property insurance with respect to that machine.Tara's computer was recently stolen.Her insurance policy covers loss by theft and the insurance company admits that it must pay a benefit to Tara.The concept of indemnification necessarily means that Tara will receive either $10 000 or the price of a new computer that is at least as good as her old computer was when it was new.

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