Calculate the Amount to Be Paid by the Insurance Company

question 141

Short Answer

Calculate the amount to be paid by the insurance company for the claim. $$\begin{array} { l l l l l } \text { Replacement } & & & \text { Amount of Loss } \\\text { Value of } & \text { Face Value } & \text { Coinsurance } & \text { Amount } & \text { Insurance Co. } \\\text { Building } & \text { of Policy } & \text { Clause } & \text { of Loss } & \text { Will Pay } \\\$ 120,000 & \$ 90,000 & 80 \% & \$ 40,000 &\end{array}$$

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Definitions:

Matched By Employer

Typically refers to contributions to retirement plans or other benefits that an employer makes, matching the employee’s contribution to a certain percentage.

Quick Ratio

A measure of a company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

Product Warranty Expense

Costs that a company anticipates or incurs for repairing, replacing, or compensating for defective products during the warranty period.

Sales Price

The amount a customer pays to purchase a product or service.