17. If Saul is concerned about being underinsured at the time of a loss, he could ask his agent to amend his policy with the inflation guard endorsement. How would this raise his limits? O a. It would raise the limits every time the national inflation rate goes up. ob. It would automatically raise his limits on a pro rata basis throughout the year by an annual percentage entered in the endorsement schedule. oc. It would ensure that after a loss has been appraised, his limits will be adjusted to cover the loss. d. It would raise his limits after a year has elapsed by a percentage entered in the endorsement schedule. 18. Experts suggest that, when discussing liability limits, an insurance agent should O a. decide on an appropriate amount for the insured and get a signature if the insured decides not to purchase it. ob. recommend the limits the insured needs. c. remind all insureds about increased limits periodically d. tell people with substantial assets that more coverage is available. to 19. Cassandra's home is insured for $300,000 on a homeowners policy with an inflation guard endorsement. The replacement card endorsement's schedule lists a percentage increase of 6 percent. If the home is destroyed by a covered peril exactly 6 months after the inception date of Cassandra's policy, the insurer will pay up to cover the loss. O a. $300,000 ob. $306,000 c. $309,000 od. $318,000 20. Which one of the following losses that Hannah's homeowners 5-comprehensive form policy covers would also be covered by a homeowners 3-special form Insurance Services Office, Inc., policy? o a. A thief broke into the insured's house and stole her legally prescribed Oxycodone pain medicine. ob. The insured's five-year-old tips over and breaks the family's 50-inch flat-panel TV C. The insured's three-year-old "decorates the wallpaper in his bedroom with a permanent magic marker. od. While installing an air conditioner in his bedroom window, the insured accidentally drops it onto the patio below, where it is ruined