Question 5 (13 Marks) a. What is average' as applicable to fire insurance? 1 mark b. Old Winery Store has purchased a property all risks insurance coverage for its stock at a sum insured for $9 million. Last Saturday, a fire broke out at Old Winery causing a total loss of its stock. However, the insurance company found that the value at risk at the time of accident was $12 million. Calculate the claims payable to Old Winery respectively under these three methods: Pro rata average clause in UK; 80% American term co-insurance; and 90% Australian term pro rata average in regards of following two separate losses: (i) $9,000,000 (ii) $450,000 Explain your answers and show all your calculations. 9 marks c. From insurers' perspective, how do you justify the pro rata average (or the pro rata average clause in UK)? 3 marks