Renee is risk manager of XYZ Company. She purchased a Commercial Packa

Renee is risk manager of XYZ Company. She purchased a Commercial Package Policy for her company and added one optional coverage.

This option suspends the coinsurance clause and substitutes a new agreement covering any loss in the same proportion that the limit of insurance purchased bears to a value specified in the declarations. This provision is known as
A) waiver of inventory coverage.
B) inflation guard coverage.
C) agreed value coverage.
D) replacement cost coverage.

ANSWER

Answer: C