Average clause is a fire policy

Average clause is a fire policy

Q. Average clause is a fire policy_________________.

A.            average the claim on the different policies taken by the insured.

B.            insures the property at average premium paid for the class three years.

C.            insures the property at the average rate of premium recovered during the last year only.

D.            penalizes under-insurance.

Answer: penalizes under-insurance

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