Question: Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to the same loss. How much will each policy

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to the same loss. How much will each policy pay for a $6m liability judgment if policy A provides $1m of coverage, policy B provides $2m of coverage, and policy C provides $6m of coverage?

a. Each policy will pay $1m, and Kevin must pay the remaining $3m.

b. Policy A will pay $1m, policies B and C will each pay $2m, and Kevin must pay the remaining 1m.

c. Policy A will pay $1m, policy B will pay $2m, and policy C will pay $3m.

d. Each policy will pay $2m.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Static pressure P is measured at two locations along the wall of a laminar boundary layer (Fig. P1087). The measured pressures are P 1 and P 2 , and the distance between the taps is small compared to...

Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance, Delta has a retention limit of $200,000, and nine lines of insurance are ceded to Eversate. How much will Eversafe pay if...

10:03 1 (310 BF) Question 1 Not yet answered Marked out of 200 Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will...

) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A...

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A...

Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will policy C pay for a $1,700,000 liability judgement if policy A...

Which of the following statements about the combined ratio is true? The combined ratio considers the company's investment income. A combined ratio less than 1 (or 100 percent) indicates that an...

Which of the following statements is (are) true with respect to catastrophe bonds? The bonds are issued by the US. Government The bonds have relatively high interest (coupon) rates. I only II only...

JKL Insurance Company reported the following information on its accounting statements last year: What was JKL's loss ratio last year? What was JKL's expense ratio last year? What was JKL's combined...

O WORDS POWERED BY QUESTION 20 Jpoint Kevin has three bability policies which provide for contribution by equal shares if other Insurance applies to a loss. How much will each policy pay for a...

Office Works has an order to manufacture several specialty products. The beginning cash and equity balances were $105,000. All other beginning balances were $0. Use your T-account worksheet to record...

Superheated vapor ammonia enters an insulated nozzle at 20C, 800 kPa, with a low velocity and at the steady rate of 0.01 kg/s. The ammonia exits at 300 kPa with a velocity of 450 m/s....

Differentiate the following to the appropriate independent variable and simplify where possible: ( 2 . 4 ) y = l n | e x ( x - 2 x + 3 ) 3 4 |

Beltran Corporation produces wooden and aluminum baseball bats. In preparing the current budget, Beltran's management estimated a total of $500,000 in manufacturing overhead costs and 10,000 machine...

The following information relates to the operations of Favre Company: Finished Goods Inventory, beginning....... $ 80,000 Finished Goods Inventory, ending........ $ 50,000 Cost of goods available for...

The following T-accounts record the operations of Roddick Co.: Required a. Calculate the amount of direct materials purchased during the period. b. Calculate the direct materials used in production...

Lee Chang opened Lee's Window Washing on July 1, 2014. In July, the following transactions were completed: July 1 Lee invested $20,000 cash in the business. 1 Purchased a used truck for $25,000,...

Lee Chang opened Changs Cleaning Service on July 1, 2010. During July the following transactions were completed. July 1 Chang invested $20,000 cash in the business. 1 Purchased used truck for $9,000,...

Taking advantage of opportunities to reduce costs or accelerate the schedule are examples of project criteria classified as q , q , static constrained unchangeable accepted enhanced

How would you summarize employees top concerns when theyre separated, based on this video? Do you agree with the lawyer?

Do you think based on the video that PTC has an effective career planning program? Why? What (if anything) would you suggest they do to improve the program?

To what extent do you think what PTC is doing will improve employee retention and turnover? Why? What else would you suggest they do? Why?