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?

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?



a) $0

b) $30,000

c) $32,000

d) $40,000



Answer: B

Comments

Popular posts from this blog

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need: