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Latest revision as of 17:00, 14 May 2023
A company purchases a commercial insurance policy with a property policy limit of 70,000. The actual value of the property at the time of a loss is 100,000. The insurance policy has a coinsurance provision of 80% and a 200 deductible, which is applied to the loss before the limit or coinsurance are applied. A storm causes damage in the amount of 20,000.
Calculate the insurance company’s payment.
- 15,840
- 16,000
- 17,300
- 17,325
- 19,800
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.