Property Insurance FundamentalsQuestion 192 of 215
An insured owns a matched pair of antique candlesticks. One candlestick is destroyed by a covered peril. Under a typical pair-and-set clause, how is the loss settled?
a.The insurer pays the difference between the value of the pair before the loss and the value of the remaining single piece after the loss, or may restore the pair, but it does not have to pay as though the entire pair were destroyed
b.The insurer must pay the full value of the entire pair and the insured keeps the remaining piece
c.The insurer pays only the salvage value of the destroyed piece
d.The insurer pays nothing because partial losses of pairs are excluded
Explanation
The pair-and-set clause prevents an insured from collecting as if a whole pair or set were destroyed when only one part is damaged. The insurer pays the reduction in value (the value of the pair before the loss minus the value of the remaining piece) or may restore the pair, but the loss is not treated as a total loss of the entire pair.
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