Your business owns a piece of property that is valued at $200,000 and is insured. The insurance policy covering this property has an 80% coinsurance clause written into the contract. The amount of insurance purchased with this contract is $120,000. In the event that there was a $120,000 loss to the building due to a covered peril, what would be the amount of reimbursement you would receive from the insurance company due to this loss? (Assume that no deductible applies.)

Your business owns a piece of property that is valued at $200,000 and is insured. The insurance policy covering this property has an 80% coinsurance clause written into the contract. The amount of insurance purchased with this contract is $120,000. In the event that there was a $120,000 loss to the building due to a covered peril, what would be the amount of reimbursement you would receive from the insurance company due to this loss? (Assume that no deductible applies.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume that a $2 million factory is insured and sustains a $700,000 loss. If pro rata coverage exists in which the primary insurer retains 76 percent of the coverage and the reinsurer provides the remaining coverage, how much with the reinsurer pay?
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Hi, Can you help with the attached questions, thanks kindly.
Sunland Company self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it would cost them $1970000 per year. The company estimates that on average it will incur losses of $1610000 per year. During 2021, $705000 worth of losses were sustained. How much total expense and/or loss should be recognized by Sunland Company for 2021?
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Carol has a closed-end lease agreement in which the lessor has estimated that the value of the leased car will be $10,000 at the end of the lease term. If Carol returns the car in good condition and under the mileage limit at the end of the lease, but the car is then worth only $9,000, Carol will A : not get her security deposit back as a penalty. B : have to pay the extra $1,000 in depreciation at that time. C : be able to walk away without any responsibility for the extra loss in value. D : receive a rebate of $1,000 from the lessor.
Which of the following items would not automatically be covered under an HO-3 form? the insured’s driveaway, if damaged by falling object The insured’s pedigreed collie valued at $6000 or $7000 A lawnmower in the insured’s garage personal property of the insured’s daughter who is away from college
am. 117.
All of the following statements are true regarding the home mortgage interest deduction EXCEPT: 1) The mortgage must have been used to buy, build, or improve the taxpayer's home. 2) The interest paid on the first $750,000 ($375,000 for MFS filers) of qualified home mortgage debt is fully deductible. 3) The $750,000 ($375,000 for MFS filers) home mortgage limit applies to refinancing a qualified mortgage from 2018. 4) Deductible home equity debt is a qualifying acquisition debt that does not exceed the $750,000 ($375,000 for MFS filers) home mortgage limit when combined with all other mortgage debt.
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Pharoah Co. bought equipment and immediately leased it to Riggs Company on May 1, 2021. At that time the collectibility of the lease payments was not probable. The lease expires on May 1, 2022. Riggs could have bought the equipment from Pharoah for $5950000 instead of leasing it. Pharoah's accounting records showed a book value for the equipment on May 1, 2021, of $4450000. Pharoah's depreciation on the equipment in 2021 was $650000. During 2021, Riggs paid $1308000 in rentals to Pharoah for the 8- month period. Pharoah incurred maintenance and other related costs under the terms of the lease of $109000 in 2021. After the lease with Riggs expires, Pharoah will lease the equipment to another company for two years. The income before income taxes derived by Pharoah from this lease for the year ended December 31, 2021, should be O $650000. O $1308000. O $549000. O $1191000.
While on vacation in the U.S.A. your insured's Cadillac is damaged in an accident with a Georgia registered automobile, insured for minimum limits of $15,000/$30,000 Bodily Injury, and $10,000 Property Damage Liability. The Georgia driver is 100% liable for $20,000 damage to your insured's automobile. Your insured has an O.A.P. 1 Owner's Policy including Direct Compensation- Property Damage with standard deductible, OPCF 44R-Family Protection Coverage but no Collision insurance. How would the claim be paid? OA) $19,500 under the insured's Direct Compensation-Property Damage coverage. OB) Nothing under the OPCF 44R and $10,000 under the Georgia policy. OC) $10,000 under the OPCF 44R and $9,500 under Direct Compensation-Property Damage coverage. OD) $1000 under the OPCF 44R and $10,000 under the Georgia policy.

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