Líneas ComercialesPregunta 464 de 531
A building with a replacement cost of $600,000 is insured for $360,000 under an 80% coinsurance clause, with a $2,500 deductible. A covered fire causes $90,000 of damage. What does the insurer pay?
a.$90,000
b.$65,000
c.$87,500
d.$67,500
Explicación
The coinsurance formula divides the amount carried by the amount required and multiplies by the loss. The amount required is 80% of $600,000, or $480,000, and the insured carried $360,000, so $360,000 divided by $480,000 is 0.75. That gives 0.75 times $90,000, or $67,500, and the $2,500 deductible then comes off for a payment of $65,000. The $67,500 answer forgets the deductible and the $90,000 answer ignores the underinsurance penalty.
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