47. Under the Vacancy provision of the Building and Business Personal Property coverage form, for losses attributable to perils which continue after the building becomes vacant, the settlement of a claim is reduced by
Answer: B
The settlement of a claim is reduced by 15% under the Vacancy provision.
When a building becomes vacant, any losses attributable to perils that persist after the vacancy are settled with a reduction of 15%.
A) 10%
A reduction of 10% does not align with the specific terms outlined in the Building and Business Personal Property coverage form regarding vacancy. The actual provision states a higher percentage reduction when claims are made after the building has been vacant.
B) 15%
This option is correct as per the Vacancy provision, which explicitly states that for losses due to perils continuing after a building is vacant, the settlement will be reduced by 15%. This accurately reflects the policy's terms concerning vacant buildings.
C) 20%
A reduction of 20% is incorrect as it exceeds the specified amount in the policy. The provision clearly states that the reduction for claims due to continuing perils after vacancy is lower than this figure.
D) 50%
This option is also incorrect because a 50% reduction is significantly higher than what is stipulated in the policy. The Vacancy provision does not support such a drastic decrease in the claim settlement amount.
Conclusion
The correct answer is 15%, as this is the stipulated reduction under the Vacancy provision for claims related to perils continuing after a building has become vacant. The other options do not reflect the terms of the policy, making them inaccurate and invalid in this context.