QUESTION 1 3.85 If the tenant does not repair or replace the improvements or betterments promptly, within the Building and Personal Property Coverage Form, improvements and betterments are sometimes valued on a(n) Stated value basis determined by the insured prior to binding coverage. Pro rata basis that equals neither ACV nor replacement cost. O ACV basis using an eighty percent coinsurance condition. Replacement cost basis using an eighty percent coinsurance condition