A building is insured by one policy for $150,000 and another for $100,000, both sharing pro rata. A covered loss of $40,000 occurs. The $150,000 policy pays:

Giải thích

Total insurance in force is $250,000, so the larger policy carries 150/250, or 60%, of the loss, which is $24,000, and the smaller policy pays the remaining $16,000. The $20,000 answer splits the loss evenly and ignores the limits. The full $40,000 would apply only if the second policy did not exist or sat in excess.