Asked by Karina Ibarra on Apr 26, 2024
Verified
Property valued at $172,000 was insured for $100,000. The policy contained a 90% coinsurance clause. A fire caused $77,400 in damages. Compute the amount the insurance company paid for repairs.
Coinsurance Clause
A provision in an insurance policy requiring the policyholder to bear a portion of the covered losses in exchange for a lower premium.
Insurance Company
A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments.
Fire Damages
The losses or destruction caused to property, goods, or assets as a result of fire.
- Investigate the role of coinsurance clauses and their consequential impact on claims processing in property and casualty insurance sectors.
Verified Answer
BS
Learning Objectives
- Investigate the role of coinsurance clauses and their consequential impact on claims processing in property and casualty insurance sectors.