After doing a thorough risk management analysis, Victor recently sold Maddox a farm policy. The analysis indicated that values at risk in Maddox's operation fluctuate substantially based on weather conditions, market prices, and other factors. Before agreeing to have the "Value Reporting Endorsement" $($FP $1301)$ added to Maddox's farm property policy, Victor made it very, very clear that Maddox must turn in all required reports accurately and on time. He explained that accurate, timely reports are important for all the following reasons except:

a$.$ If a report is late, the insurer will pay no more than the applicable values in the last report $($or the applicable limit of insurance, if it is less$).$

b$.$ If the first report is not made and a loss occurs, the insurer will not pay more than $75$ percent of the amount otherwise payable.

c$.$ Maddox's premium will be based on the highest values reported as this reflects the insurer's maximum exposure.