Which of the following pertaining to cash value is false: When settlement of a claim is on an actual cash value basis, the insured can use the funds from the settlement in any way they choose When settlement of a claim is on a replacement value basis, depreciation is not factored in to the settlement amount When settlement of a claim is on an actual cash value basis, the insured cannot use the funds from the settlement in any way they choose When settlement of a claim is on an actual cash value basis, depreciation is factored into the settlement amount With regard to automobile insurance, identify the statements that are true. 1. Lowering the amount of liability insurance is typically a wise strategy for managing insurance costs. 2.The elimination of collision coverage can be a valid cost managing strategy, especially for low valued vehicles. 3.The decision to eliminate collision coverage affects only the vehicle's owner. 4. Decreasing the insurance deductible will help to lower the insurance premium. 1 and 2 2 and 3 1 and 4 3 and 4 Jack has decided to purchase creditor insurance on the recent car loan he obtained with his bank. Creditor insurance: Is commonly portable between institutions Will have a decreasing premium schedule where the premium will proportionately be reduced based on the decreasing loan amount Will have a level premium for as long as it is in place Is unique because ownership and control of the contract lies entirely with the borrower When fire struck and destroyed a substantial portion of the contents of Connor's home, the insurance company explained that his policy would reimburse him for his loss based on the actual cash value of the items. With this type of policy, which of the following statements are true? 1. The claim settlement amount will not include a deduction for depreciation on each item. 2. The claim settlement amount will include a deduction for depreciation on each item. 3. Connor may use the funds from the settlement any way he wishes, and is under no obligation to actually replace the items. 4. Connor will receive reimbursement only if he repairs or replaces an item with another one of similar quality. 1 and 3 1 and 4 2 and 3 2 and 4