Margo Has a $100,000 Home

question 45

Multiple Choice

Margo has a $100,000 home. She has it insured by four different insurers,each providing the following amount of coverage:
Insurer A: $10,000
Insurer B: $20,000
Insurer C: $30,000
Insurer D: $40,000.
A $20,000 loss occurs. Under a pro-rata distribution other insurance clause Company B will pay:

• A)$ 2,000
• B)$ 4,000
• C)$ 6,000
• D)$20,000

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