Find the Amount Paid by Each of the Multiple Carriers

question 33

Multiple Choice

Find the amount paid by each of the multiple carriers.
-The London Coat Company had an insured fire loss of $167,000. It had insurance coverage as follows: Company A, $500,000; Company B, $350,000; and Company C, $150,000. Find the amount paid by each carrier assuming that the coinsurance requirement had been met.

• A)$91,850, $54,275, $20,875
• B)$87,675, $50,100, $29,225
• C)$79,325, $54,275, $33,400
• D)$83,500, $58,450, $25,050

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Definitions:

Inflation

The tempo at which the aggregate cost of goods and services ascends, depleting the power of purchase.

Nominal Wage

Nominal Wage refers to the amount of money paid to workers in current dollars, without adjusting for inflation or purchasing power.

Real Wage

The purchasing power of an individual's earnings, considering inflation, reflecting the actual goods and services that wages can buy.

Labor Productivity

An indicator of economic efficiency that assesses the volume of goods and services generated (output) in relation to the total labor hours expended in their production.