If two candlesticks are insured for $2,000 and one candlestick is damaged, what is the payout?

The correct answer relates fundamentally to how insurance payouts are structured when there are multiple insured items. In the scenario where two candlesticks are insured for a total value of $2,000, the individual value of each candlestick is $1,000. If one candlestick is damaged, the insurance policy would typically provide a payout that corresponds to the loss of that one item.

Choosing the option indicating that the insurance company pays out $2,000 with the condition that it takes the other candle reflects a specific arrangement often seen in insurance policies known as "total loss" provisions. This means that if one of the insured items is fully lost or damaged, the insurer compensates the total insured amount, as they would assume ownership of the remaining item to cover its risk.

This option effectively highlights the insurance principle whereby the insured is compensated for their loss up to the insured value of the damaged item while also addressing the idea that the insurer gains possession of the remaining insured asset, mitigating their future risk.

In contrast, other options do not fully capture the totality of loss coverage or the specific dynamics of ownership transfer relevant in these insurance setups.