Find the amount paid by each insurance company. Assume that any coinsurance requirement is met.
-Insurance loss: $102,000
Company A coverage: $400,000
Company B coverage: $50,000
Company C coverage: $50,000

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Quizplus · Accepted Answer

The total coverage is $500,000 ($400,000 from Company A + $50,000 from Company B + $50,000 from Company C). Each company pays a portion of the loss based on their share of the total coverage. Company A covers 80% ($400,000 of $500,000), so it pays 80% of the loss: $81,600. Companies B and C each cover 10% ($50,000 of $500,000), so they each pay 10% of the loss: $10,200.

Find the Amount Paid by Each Insurance Company