Best Insurance Company provides Eve Erickson with property insurance that contains an 80% coinsurance clause.

Best Insurance Company provides Eve Erickson with property insurance that contains an 80% coinsurance clause. The coinsurance clause states that if Eve insures the property up to 80% of its value, she will recover any loss up to the face amount of the policy. Eve purchases an $80,000 property insurance policy for property valued at $200,000. Due to a fire, Eve suffers a loss of $10,000.

In Fact Pattern #2, what dollar amount will Eve recover from the insurance company? Explain and show your calculation of Eve's insurance recovery.

Expert Solution

The amount of coverage there should have been = 200000 * 80 % = 160000 (Considering 80% insured clause)

Amount of coverage present = $80000

Ratio of AMount of coverage present / Amount of coverage required = 80000 / 160000 = 0.5

Amount of loss that Eve can recover = 0.5 * $10000 = $5000

keosha answered 1 year ago

Tom has a homeowner’s policy with a 80% coinsurance clause. The full insurable value of his...

Tom has a homeowner’s policy with a 80% coinsurance clause. The full insurable value of his property is $1,000,000. He is only carrying $400,000 in coverage. A fire in the kitchen breaks out (which is a covered peril) and Tom incurs $200,000 in damages. How much will Tom recover from his insurance policy, ignoring any deductibles? $200,000 $160,000 $100,000 $40,000

A health insurance policy has a coinsurance clause that requires the insured to pay the first...

A health insurance policy has a coinsurance clause that requires the insured to pay the first $250 of charges and 20 percent of additional charges up to a maximum total payment of $1,250. The bills for health care are January 5. $120. March 30. $45 April 18. $375. June. 20. $63 August 25. $560. October 2. $190 November 1 $35. December 20. $95 Calculate the amount the insured must pay for each of the bills. Then determine the total amount...

The insurance required to meet coinsurance is: 80% × face value 80% × replacement value 80%...

The insurance required to meet coinsurance is: 80% × face value 80% × replacement value 80% × actual loss Insurance carried divided by 80% None of these

Joanne has a health insurance plan with a $1000 calendar-year deductible, 80% coinsurance

Joanne has a health insurance plan with a $1000 calendar-year deductible, 80% coinsurance, and a $5,000 out-of-pocket cap Joanne incurs $1,000 in covered medical expenses in March, $3,000 in covered expenses in July, and $30,000 in covered expenses in December. How much does Joanne's plan pay for her July losses?(Careful: The facts on this Concept Check are the same as in the previous one, but the question asked is different) Joanne has a health insurance plan with a $1000 calendar...

Greg has a traditional health insurance plan with a $250 deductible, 80/20 coinsurance, and a $6000...

Greg has a traditional health insurance plan with a $250 deductible, 80/20 coinsurance, and a $6000 out-of-pocket limit. His total health care bill is $8,760. How much of this bill will he end up paying?

What dollar amount will Eve recover from the insurance company?

Best Insurance Company provides Eve Erickson with property insurance that contains an 80% coinsurance clause. The coinsurance clause states that if Eve insures the property up to 80% of its value, she will recover any loss up to the face amount of the policy. Eve purchases an $80,000 property insurance policy for property valued at $200,000. Due to a fire, Eve suffers a loss of $10,000.What dollar amount will Eve recover from the insurance company? Explain and show your calculation...

he portion of a property and liability insurance contract that contains information about the property or...

he portion of a property and liability insurance contract that contains information about the property or activity to be insured is called the: (a) Declarations (b) Insuring agreement (c) Exclusions (d) Conditions

Let's say your health insurance plan has the following features: • Deductible: $500 • Coinsurance: 80/20...

Let's say your health insurance plan has the following features: • Deductible: $500 • Coinsurance: 80/20 (you pay the 20%; insurance company pays 80%) • Out-of-Pocket Maximum: $5,000 Now, let's say that you go to the hospital and incur $7,500 worth of medical expenses. How much do you have to pay out of pocket? What would be your out-of-pocket cost for $20,000 of annual medical expenses? What would be your out-of-pocket cost for $40,000 of annual medical expenses?

Mandren Inc. has a fire insurance policy from the Blundi Insurance Company with a 90% coinsurance...

Mandren Inc. has a fire insurance policy from the Blundi Insurance Company with a 90% coinsurance clause based on replacement cost. The replacement cost of the building is $600,000. The face amount of the policy Mandren purchases is $400,000. If a covered loss in the amount of $550,000 occurs, how much will Mandren collect from their insurer? (round to the nearest dollar) $422,232 $352,708 $400,000 $411,111

Question 3 Find the amount paid by each insurance company. Assume that any coinsurance requirement is...

Question 3 Find the amount paid by each insurance company. Assume that any coinsurance requirement is met. Insurance loss: $15,000 Company A coverage: $90,000 Company B coverage: $30,000 A pays: $11,250 B pays: $3750 A pays: $13,500 B pays: $1500 A pays: $10,500 B pays: $4500 A pays: $15,000 B pays: $0

Question