Asked by Jamie Stuart on Jun 09, 2024
Verified
Property valued at $140,000 was insured for $90,000. The policy contained an 80% coinsurance clause. A fire caused $56,000 in damages. Compute the amount the insurance company paid for repairs.
Coinsurance Clause
A provision in an insurance policy that defines the percentage of the claim amount to be shared between the insurer and the insured.
- Learn and apply the principles of coinsurance clauses to ascertain insurance settlement figures and policyholder duties after a claim is made.
Verified Answer
AC
Learning Objectives
- Learn and apply the principles of coinsurance clauses to ascertain insurance settlement figures and policyholder duties after a claim is made.
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