Explanation Given Information: The Bravo manufacturing, Inc, had property value of $ 850 , 000 and the event is of $ 3,25000 . The fire insurance policy contained a 70 % and insured for $ 40,0000 . Formula Used: To calculate the paid amount value of the insurance company as follows: , Step1: In first calculate the insurance required as, Insurance required = replacement value of the property × coinsurance percent Step2: Finally, calculate the amount of the loss which is paid by the insurance company by multiply the coverage ratio by the amount of the loss. Amount of loss paid by the insurance = insurance carried insurance required × amount of the loss Calculation: Consider the provided policies are the replacement value of the properties is $ 850000 , face value of the policy is $ 400000 and coinsurance clause is 70 % , amount of the loss is $ 325000 . Calculate the paid amount value of the Manufacturing company. The provided value of the property is $ 850000 and coinsurance percent is 70 %

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

8th Edition

ISBN: 9781337125468

Author: Brechner

Publisher: Cengage

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Chapter 19.II, Problem 7TIE

To determine

To calculate: The amount paid by the insurance company in the provided event of a $ 325000 fire, if the fire insurance policy contained a 70% coinsurance clause.

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Chapter 19.II, Problem 6TIE

Chapter 19.II, Problem 8TIE

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Chapter 19 Solutions

Contemporary Mathematics for Business & Consumers - With LMS CengageNOW

Ch. 19.I - Prob. 1TIE Ch. 19.I - Prob. 2TIE Ch. 19.I - Prob. 3TIE Ch. 19.I - Calculate the annual, semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 3RE Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 5RE Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...

Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 9RE Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Prob. 11RE Ch. 19.I - Prob. 12RE Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Leroy Kirk is 35 years old and is interested in...Ch. 19.I - 16. Rene Boyer, age 27. wants to purchase a 5-year...Ch. 19.I - Carmen Gutierrez purchased a $75,000, 20-payment...Ch. 19.I - 18. Alex Baron is evaluating his life insurance...Ch. 19.I - Richard Ryan is evaluating his life insurance...Ch. 19.I - BUSINESS DECISION: THE CONSULTATION 20. Tina...Ch. 19.II - You are the insurance agent for Diamond...Ch. 19.II - Prob. 5TIE Ch. 19.II - Prob. 6TIE Ch. 19.II - Prob. 7TIE Ch. 19.II - Prob. 8TIE Ch. 19.II - Prob. 1RE Ch. 19.II - Prob. 2RE Ch. 19.II - Prob. 3RE Ch. 19.II - Calculate the building, contents, and total...Ch. 19.II - Prob. 5RE Ch. 19.II - Prob. 6RE Ch. 19.II - Prob. 7RE Ch. 19.II - Prob. 8RE Ch. 19.II - Prob. 9RE Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Prob. 13RE Ch. 19.II - Prob. 14RE Ch. 19.II - Prob. 15RE Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 17RE Ch. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 19RE Ch. 19.II - You are the insurance agent for Castle Mountain...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - 22. Insignia Enterprises has a property insurance...Ch. 19.II - Prob. 23RE Ch. 19.II - BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE...Ch. 19.III - Jeff Wasserman, owner of High Performance Racing...Ch. 19.III - Prob. 10TIE Ch. 19.III - Prob. 1RE Ch. 19.III - Prob. 2RE Ch. 19.III - Prob. 3RE Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - Prob. 5RE Ch. 19.III - Prob. 6RE Ch. 19.III - Prob. 7RE Ch. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - 9. Rick Clinton wants to purchase an automobile...Ch. 19.III - 10. Howard Marshall’s Corvette was hit by a palm...Ch. 19.III - Ben Hoffman has motor vehicle liability insurance...Ch. 19.III - BUSINESS DECISION: INSURING THE FLEET 12. The...Ch. 19 - A mechanism for reducing financial risk and...Ch. 19 - 2. The amount of protection provided by an...Ch. 19 - Prob. 3CR Ch. 19 - Prob. 4CR Ch. 19 - Prob. 5CR Ch. 19 - Prob. 6CR Ch. 19 - Prob. 7CR Ch. 19 - Prob. 8CR Ch. 19 - The premium charged when a policy is canceled by...Ch. 19 - The clause in a property insurance policy...Ch. 19 - Prob. 11CR Ch. 19 - Prob. 12CR Ch. 19 - Prob. 13CR Ch. 19 - Prob. 14CR Ch. 19 - Prob. 1AT Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Prob. 5AT Ch. 19 - Prob. 6AT Ch. 19 - Prob. 7AT Ch. 19 - 8. Mary Hall purchased a $45,000 20-year endowment...Ch. 19 - Prob. 9AT Ch. 19 - Calculate the building, contents, and total...Ch. 19 - Prob. 11AT Ch. 19 - Prob. 12AT Ch. 19 - Prob. 13AT Ch. 19 - Calculate the short-term premium and refund for...Ch. 19 - Prob. 15AT Ch. 19 - Calculate the amount to be paid by the insurance...Ch. 19 - Prob. 17AT Ch. 19 - Prob. 18AT Ch. 19 - Prob. 19AT Ch. 19 - Prob. 20AT Ch. 19 - Prob. 21AT Ch. 19 - Prob. 22AT Ch. 19 - Prob. 23AT Ch. 19 - Prob. 24AT

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The amount paid by the insurance company in the provided event of a $ 325000 fire, if the fire insurance policy contained a 70 % coinsurance clause.

Solution Summary: The author calculates the amount of loss paid by the insurance company in the provided event of a 325000

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To calculate: The amount paid by the insurance company in the provided event of a $ 325000 fire, if the fire insurance policy contained a 70% coinsurance clause.

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Chapter 19 Solutions