114. Jackie has a valued insurance policy on her antique square grand piano with a $35,000 limit. After thieves break into her house and steal her piano, she files a claim with her insurer. In an effort to support her claim, she provides her insurer with an article showing a similar piano that was recently sold at auction for $52,000. Ignoring any deductible, how much can Jackie expect to receive in indemnification for her claim?
Answer: D
Jackie can expect to receive $35,000 in indemnification for her claim.
Since Jackie has a valued insurance policy with a limit of $35,000, that is the maximum amount she can receive for her stolen piano. The article showing a similar piano sold for $52,000 does not affect the insured limit.
A) $17,000
This option is incorrect because the policy limit of $35,000 is the maximum indemnification amount Jackie can receive. There is no basis for calculating a lower amount like $17,000 based on the information provided.
B) $52,000
This option is incorrect as it exceeds the policy limit. While the auction price of a similar piano is $52,000, Jackie’s insurance policy only covers up to $35,000, which is the amount she is entitled to receive.
C) $0
This option is incorrect because Jackie has a valid claim under her insurance policy. She is entitled to receive indemnification up to the policy limit of $35,000, meaning she will not receive zero.
D) $35,000
This option is correct because it aligns with the value limit set in Jackie’s insurance policy. Regardless of the auction price of a similar piano, the insurer is obligated to indemnify her up to the stated policy limit.
Conclusion
Jackie's expected indemnification amount of $35,000 is clearly defined by her insurance policy limit. All other options either suggest amounts that are not supported by the policy or ignore the established coverage limits. Therefore, $35,000 is the definitive correct answer based on the context of the insurance claim.