Andrew owns a commercial office building that is insured under
Andrew owns a commercial office building that is insured under three property insurance contracts. He has $100,000 of insurance from Company A, $200,000 from Company B, and $200,000 from Company C.
a. Assume that the pro rata liability provision appears in each contract. If a $100,000 loss occurs, how much will Andrew collect from each insurer? Explain your answer.
b. What is the purpose of the other-insurance provisions that are frequently found in insurance contracts?

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