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How much will frank insurer pay

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Reference no: EM131428526

The inventory at Frank's business fluctuates. Frank's property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory. Last period, Frank reported $200,000 when the value was really $400,000. Shortly after filing the report, when the value was $500,000, the inventory was destroyed. How much will Frank's insurer pay, assuming no deductible?

a. nothing, as underreporting voids coverage
b. $200,000
c. $250,000
d. $400,000

Reference no: EM131428526

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