The 80% Co-Insurance Clause in a Homeowner's Policy Would Cause

Multiple Choice

The 80% co-insurance clause in a homeowner's policy would cause a reduction in the claim payment for a covered loss to the dwelling of $30,000 in which of the following cases:

A) dwelling limit of $75,000,replacement cost of dwelling $90,000,actual cash value of dwelling $85,000
B) dwelling limit of $70,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000
C) dwelling limit of $90,000,replacement cost of dwelling $90,000,actual cash value of dwelling $90,000
D) dwelling limit of $110,000,replacement cost of dwelling $110,000,actual cash value of dwelling $90,000
E) dwelling limit of $120,000,replacement cost of dwelling $100,000,actual cash value of dwelling $90,000