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Rufina [12.5K]
3 years ago
11

. If Carissa Dalton has a $130,000 home insured for $100,000, based on the 80 percent coinsurance provision, how much would the

insurance company pay on a $5,000 claim
Business
1 answer:
aev [14]3 years ago
7 0

Answer:

$4,807.69

Explanation:

The first step is to calculate the requirement for coinsurance

= 80/100 × 130,000

= 0.8× 130,000

= 104,000

Therefore the amount in which the insurance person will pay can be calculated as follows

= 100,000/104,000 × 5000

= 0.96153×5000

= $4,807.69

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