Affordable Consulting Has Insured Its Building with Multiple Companies for a Total

question 97

Multiple Choice

Affordable Consulting has insured its building with multiple companies for a total of $688,000, of which $275,200 is with USF&G. Assuming that all coinsurance requirements have been met, how much would USF&G be responsible for in the event of a $565,000 fire?

• A) $275,200
• B) $412,800
• C) $339,000
• D) $226,000

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Definitions:

Bounce Height

The vertical distance a dropped object reaches after rebounding off a surface, often used to measure elasticity or energy efficiency.

Residual

The difference between observed values and expected values in statistical models, indicating the error in predictions.

Linear Model

A statistical model that assumes a linear relationship between the input variables (predictors) and the single output variable.

Regression Analysis

A statistical method used to model the relationship between a dependent variable and one or more independent variables.