Vandome Pizzeria recently incurred $174,000 in damages from an earthquake. Massive Mutual is responsible for $240,800 out of a total of $688,000 coverage provided by multiple carriers. If all coinsurance requirements have been met, how much of the loss will be paid by Massive Mutual?

Question

Quizplus · Accepted Answer

Massive Mutual's share of the total coverage is $240,800 out of $688,000. The proportion of the loss they cover is $240,800 / $688,000. Therefore, they will pay $174,000 * ($240,800 / $688,000) = $60,900.

Vandome Pizzeria Recently Incurred $174,000 in Damages from an Earthquake