(b) Mr. Otieno insured a building with two insurance companies: Amco insurance company and Gateway insurance Company. Amco covered Kshs. 300,000 and Gateway covered Kshs. 650,000. A year later, the building was destroyed by fire. The loss to the building was estimated to be Kshs. 450,000. Amco Insurance Company paid a total loss of Kshs. 450,000 as compensation to Mr. Otieno.
Required
i. Calculate the sum insured.(2 Marks)
ii. Calculate the amount Amco insurance company is supposed to recover from Gateway insurance company(5 Marks)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below i Sum Insured Kshs 300000 ... View the full answer