Alphonse owns property worth $250,000 and carries $150,000 of insurance subject to an 80 percent co-insurance clause.Given a $20,000 loss to the property,calculate the indemnity to be paid by the insurer,and explain the significance of the co-insurance clause as it affects Alphonse.

Question

Quizplus · Accepted Answer

The Answer of Alphonse owns property worth $250,000 and carries $150,000 of insurance subject to an 80 percent co-insurance clause.Given a $20,000 loss to the property,calculate the indemnity to be paid by the insurer,and explain the significance of the co-insurance clause as it affects Alphonse.

Alphonse Owns Property Worth $250,000 and Carries $150,000 of Insurance