Find the Amount Paid by Each of the Multiple Carriers

question 72

Multiple Choice

Find the amount paid by each of the multiple carriers.
-The Dixie Beer Company had an insured fire loss of $61,000. It had insurance coverage as follows: Company A, $500,000; Company B, $200,000; and Company C, $100,000. Find the amount paid by each carrier assuming that the coinsurance requirement had been met.

• A)$35,075, $16,775, $41,175
• B)$41,175, $12,200, $7,625
• C)$38,125, $15,250, $7,625
• D)$36,600, $15,250, $9,150

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use does not diminish another's.

Free-rider Problem

A situation where individuals consume a good without contributing to its cost, typically in the context of public goods.

Public Good

A good or service offered to every member of a community for free, supplied by either governmental bodies or private entities without the intention of making a profit.

Optimal Level

The most efficient, beneficial, or favorable point in a process or activity, often associated with achieving the best outcome or maximum productivity.