A building worth $100,000 is insured for $60,000 under a policy with a 90% co-insurance clause. Fire damages the building to the extent of $93,000. How much would the insurer pay? OA) $48,000.00 OB) $50,000.00 OC) $60,000.00 OD) $62,000.00
A building worth $100,000 is insured for $60,000 under a policy with a 90% co-insurance clause. Fire damages the building to the extent of $93,000. How much would the insurer pay? OA) $48,000.00 OB) $50,000.00 OC) $60,000.00 OD) $62,000.00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
8
Transcribed Image Text:Font Size
A building worth $100,000 is insured for $60,000 under a policy with a 90% co-insurance clause. Fire damages the
building to the extent of $93,000. How much would the insurer pay?
OA) $48,000.00
OB) $50,000.00
OC) $60,000.00
OD) $62,000.00
Transcribed Image Text:Your insured asks if a cemetery plot he/she has just acquired is covered for Personal Liability under his/her
Homeowners Comprehensive policy. What would be your reply?
OA) A separate policy must be purchased.
OB) The policy can be endorsed to cover the additional location for a small additional premium.
OC) The Liability section of his/her policy automatically covers cemetery plots.
OD) There is no need for coverage since he/she has no liability for the plot.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Your insured asks if a cemetery plot he/she has just acquired is covered for Personal Liability under his/her Homeowners Comprehensive policy. What would be your reply? OA) A separate policy must be purchased. OB) The policy can be endorsed to cover the additional location for a small additional premium. OC) The Liability section of his/her policy automatically covers cemetery plots. OD) There is no need for coverage since he/she has no liability for the plot.
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education