George and Nancy had a $30,000 repair bill on their home after the tornado went through town.Their policy contained the usual 80% co-insurance clause.Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.(Round your percentage calculation to nearest whole number.)
a.
How much insurance should they have carried to meet the co-insurance obligation?
b.
What percentage of this loss will the insurance company pay?
c.
How much of the loss will George and Nancy have to absorb?

Question

Quizplus · Accepted Answer

The Answer of George and Nancy had a $30,000 repair bill on their home after the tornado went through town.Their policy contained the usual 80% co-insurance clause.Their home's replacement value was $150,000; their policy coverage was $110,000 with a $250 deductible.(Round your percentage calculation to nearest whole number.)
a.
How much insurance should they have carried to meet the co-insurance obligation?
b.
What percentage of this loss will the insurance company pay?
c.
How much of the loss will George and Nancy have to absorb?

George and Nancy Had a $30,000 Repair Bill on Their