2- In loss settlement that deals with the payment of losses, you should know how losses are settled under a homeowners policy. Personal property is settled on the basis of actual cash value at the replacement cost with no deduction for depreciation if the amount of insurance carried equal to at least 80% of the replacement cost of the damaged building at the time of loss. However, a different set of rules applied if the amount of insurance carried is less than 80% of the replacement cost. Accordingly, solve the following problem: Assume that a dwelling has a replacement cost of $ 300,000 but is insured for only $200,000. The roof of the house is 10 years old and has a useful life of 20 years, so it is 50% depreciated. Assume that the roof is severely damaged by a tornado, and the replacement cost of a new roof is 30,000. Ignoring the deductible, what would the insured receives? Explain (5 marks)