A Skyscraper is insured with three different companies with the amounts of coverage as follows for property
Question:
Equitable: $800,000
Famous: $1,000,000
Carrying: $1,600,000
Assume the Skyscraper suffer damages estimated at $600,000 due to fire in the basement. Determine the responsibility of each insurer.An airline company has three liability insurance policies in the following amounts:
Insurer A: $2,000,000
Insurer B: $3,000,000
Insurer C: $6,000,000
Case 1: the airliner is sued and is found liable for $3,000,000. Determine each insurer's share of the damages.
Case 2: The airline company was found liable for $7,500,000 instead. Determine each insurance company's share of the claim.
Question 2
(6 points) You have a property insurance policy that is subject to 90% coinsurance clause. The value of property is currently $400,000. The property is insured for 320,000. If the property suffers a loss equals to $120,000, how much will the insurance company?
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis