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BaLLatris [955]
3 years ago
9

If Carissa Dalton has a $136,000 home insured for $105,000, based on the 80 percent coinsurance provision, how much would the in

surance company pay on a $8,600 claim?
Business
1 answer:
Andrei [34K]3 years ago
5 0

Answer:

$ 8299.632

Explanation:

Given data in the problem:

The value of the home = $ 136,000

The insured amount of the house = $ 105,000

80% coinsurance provision = 0.8 × $ 136,000  = $ 108,800

Claimed amount = $ 8,600

Therefore, the claimable amount =  8600\times(\frac{105000}{108800})

= $8299.632

hence, the amount the insurance company will pay = $ 8299.632

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