Jane Smith insures her $30,000 house as follows: $10,000 in insurer A, $20,000 in insurer B, and $10,000 in insurer C. In the event of a loss of $10,000, each insurer must pay as follows:

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Jane Smith has insured her house for a total of $40,000 across three insurers, which is more than the value of the house. However, in the event of a $10,000 loss, the payment by each insurer is proportional to the amount insured with them. Insurer A has covered 1/4 of the total insurance ($10,000 out of $40,000), insurer B has covered 1/2 ($20,000 out of $40,000), and insurer C has also covered 1/4 ($10,000 out of $40,000). Therefore, in the event of a $10,000 loss, they pay in proportion to their share of the total insurance on the house.

Jane Smith Insures Her $30,000 House as Follows: $10,000 in Insurer