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GFOA Exam CPFO Topic 8 Question 95 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 95
Topic #: 8

[All CPFO Questions]

If a building originally valued at $160,000 appreciates to $300,000 and is insured by an 80% coinsurance clause, then 80% of the value ($320,000) must be insured. If the building is still insured at only $160,000 and a $100,000 loss occurs, the loss would be:

A$ 40,000

B$50,000

C$44,000

D$60,000

Show Suggested Answer

Suggested Answer: C

by Rebecka at Aug 25, 2024, 07:28 AM

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Denise

8 days ago

80% of $320,000 is $256,000, not $160,000. This is clearly a trick question.

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Andrew

16 days ago

I'm not sure, but I think the correct answer is B) $50,000.

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Mattie

17 days ago

This question is a real brain-teaser! I'm not sure I can wrap my head around all the calculations involved.

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Fausto

3 days ago

A) $40,000

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Jerlene

22 days ago

I agree with Vivan, the loss would be $50,000.

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Vivan

25 days ago

I think the answer is B) $50,000.

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