Which of the following statements is true regarding Betty's insurance coverage?

The statement indicating that Betty does not meet the minimum coinsurance requirement is correct because it highlights an essential aspect of how insurance policies operate, particularly concerning property insurance. Coinsurance is a provision that requires the insured to carry a certain percentage of the property's value in coverage. If the amount of insurance is less than the required coinsurance percentage, the insurer may reduce the payout on a claim in proportion to the amount of coverage that is in place compared to the amount required.

This aspect is crucial for the insured to understand since failing to meet the minimum coinsurance requirements can lead to penalties in the event of a total loss, where the claim payment could be significantly less than the actual cost to replace the property. If Betty's coverage is below the required threshold, she may not receive enough compensation to properly cover her losses.

The other answer choices do not align with the implications of insufficient coinsurance. The assertion that Betty is fully covered for all losses is misleading since such coverage is contingent upon meeting the terms of the policy's coinsurance requirement. Stating that her premium will decrease significantly does not necessarily follow from her status regarding coinsurance; premiums are influenced by various factors, including risk assessment, not solely by whether coinsurance requirements are met. Lastly, while mentioning