Courtland Incorporated owns a $1 million office building which it insures under a Building and Personal Property Coverage Form (BPP) with an 80 percent coinsurance provision. In an effort to reduce the premium, and assuming that it would never have a total loss, Courtland Incorporated decided to insure the building for $600,000. Ignoring any deductible that may apply, how much would the BPP insurer pay if the building suffered a covered loss of $100,000? 

Answer rating: 100% (QA)

To determine how much the BPP insurer would pay in the event of a covered loss we first need to ca... View the full answer