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oksian1 [2.3K]
3 years ago
13

5 An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy

is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay?
Business
1 answer:
qaws [65]3 years ago
5 0

Answer:

each policy will pay $25,000 of the loss

Explanation:

Based on the scenario being described within the question it can be said that the each policy will pay $25,000 of the loss. This is an equal share for each policy and is due to them having the pro rata liability clause. This clause states that a policy is only liable for an equal percentage of the loss if the insurer has other policies from other companies. As in this case.

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What is the meaning of market in economics
Aloiza [94]
<span>The market refers to the buying and selling abilities within a ocal, state, or national economy.</span>
4 0
3 years ago
Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cum
Assoli18 [71]

Answer:

Dividend paid = (5%× 10,000 × $10) = $5000.

Explanation:

<em>Preference shares entitles the holders to  participate in a fixed dividend out of the profit made by the company. The divide is always a fixed percentage of the nominal value of the preference shares</em>

It can be cumulative and non-accumulate.

Cumulative <em>simply implies that should the company misses the payment of dividend in a particular year such unpaid dividend would be carried carried forward and paid in arrears in the following year/</em>

Non-cumulative i<em>s the exact opposite of the case . Here, unpaid dividends are not paid in arrears in fact such are forfeited for life.</em>

Dividend in Year 1

Dividend paid in Year 1 was $ 4000 but ought to be $5,000 (5%× 10,000 × $10). An arrear of $1000

Dividend in Year   2

Dividend paid = (5%× 10,000 × $10) = $5000.

Note that the unpaid dividend of $1,000 in year 1 is lost forever

3 0
3 years ago
In one year, you meet 52 people who are each unemployed for one week and eight people who are each unemployed for the whole year
VARVARA [1.3K]

Long term unemployment is defined as being unemployed for 27 weeks or more. In this example there are a total of 60 people, 52 people who would be categorized as short term unemployment and 8 people who would be categorized as long term unemployment.

In order to calculate the percentage of unemployment in each category you will need to divide the number in each category by the total number.

Short term = 52/60 = 86.7%

Long term - 6/60 = 13.3%

4 0
3 years ago
Read 2 more answers
Rick's Internet Corporation's balance in Retained Earnings is $30,000. The board of directors directs that $15,000 be appropriat
gtnhenbr [62]

<u>Answer</u> is D. remain at $30,000.

<u>Explanation:</u>

Rick's Internet Corporation balance in retained earnings = $30,000

Appropriated earning for future business expansion = $15,000

This appropriated earning set for future use will have no effect on the total retained earnings, because for appropriate retained earnings,  the entry is to debit the retained earnings account.

Also, it would be board's decision if they want to use the money from the retained earnings or add more capital to it.

6 0
3 years ago
Ridgewood Company had the following ending balances on its financial statements: 2018 2019 2020 Prepaid insurance $1,400 $ 900 $
Radda [10]

Answer:

B $12,300

Explanation:

Note that the movements in the prepaid insurance account balance is as a result of payments and amortization of these expenses as they fall due. While additional payments increases the prepaid insurance balance, amortization reduces it.

Given that the ending balance in the Prepaid insurance account for 2018 is  $1,400. This is the opening balance for prepaid insurance in 2019. Given that the insurance expense for 2019 is $12,800 and the ending balance in the Prepaid insurance account for 2019 is $900

Let the amount paid in 2019 be r

Then

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r = $900 + $12,800 - $1,400

r = $12,300

The right answer is B $12,300

7 0
3 years ago
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