Jet Li has an insurance policy insuring his laptop computer that was stolen. The laptop computer cost RM4,500 when it was purchased five years ago. A similar laptop computer today can be purchased at RM3,000. Assuming that the laptop computer was 25%depreciated at the time of loss, calculate the amount of claim payable by the insurer based on                                 

a. Actual cash value.                                                                

b. Replacement cost.

 

2. State Six (6) ideal requirement of an insurable risk