All Season Gifts Owns a Building Valued at $802,000, but Has

question 41

Multiple Choice

All Season Gifts owns a building valued at $802,000, but has decided to insure it for only $552,000. Their insurance policy stipulates coinsurance of 85%. If a fire were to cause $208,000 in damage, how much would the insurance company pay on the claim? (Round your answer to the nearest cent)

• A) $208,000.00
• B) $16,190.05
• C) $168,425.99
• D) $191,800.00