The Property of Lance's Garage Is Worth $90,000

question 30

Multiple Choice

The property of Lance's Garage is worth $90,000. Lance has a fire insurance policy of $40,000 that contains an 80% coinsurance clause. On a fire that causes $60,000 of damage, the insurance company pays:

• A)$27,777.78
• B)$27,777.87
• C)$33,333.33
• D)$33,334. 00
• E)None of these