Under a nonscheduled plan, what portion of the balance could an insured expect to pay for basic services?

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Under a nonscheduled plan, what portion of the balance could an insured expect to pay for basic services?

A. 50%
B. 80%
C. 100%
D. 20%

Answer: D. 20%

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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