Asked by samuel lainez on May 22, 2024
Verified
The Faulkner Company building was valued at $450,000. The building was insured for $400,000. The policy contains an 80% coinsurance clause. A fire caused damages of $260,000. Compute the amount the insurance company paid for damages.
Coinsurance Clause
A provision in an insurance policy that defines the split of costs between the insurer and the insured after the deductible is met.
- Master and utilize coinsurance clauses in order to compute payouts from insurance and responsibilities of the policyholder after filing a claim.
- Assess the fiscal impact associated with property insurance at diverse values and the comprehension of short-rate refund practices.
Verified Answer
AM
Learning Objectives
- Master and utilize coinsurance clauses in order to compute payouts from insurance and responsibilities of the policyholder after filing a claim.
- Assess the fiscal impact associated with property insurance at diverse values and the comprehension of short-rate refund practices.