Darinel insures a $150,000 building with Morales Insurance Co.for $50,000 and with Washington Insurance Co.for $100,000.The building is partially destroyed by fire,causing $25,000 in damages.Darinel will be able to collect:
A) one-third of the damages from Morales Insurance Co.
B) one-half of the damages from Morales Insurance Co.
C) from neither Morales nor Washington since it was fraudulent to purchase policies covering the same property from two different insurance companies.
D) $25,000 from either Morales or Washington Insurance Co. ,but cannot collect from both insurers.

Question

Quizplus · Accepted Answer

Darinel can collect one-third of the damages from Morales Insurance Co. because Morales covers one-third of the total insurance ($50,000 out of $150,000).

Darinel Insures a $150,000 Building with Morales Insurance Co