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11-03-2024
Business

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The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay?
A Company A will pay $20,000; Company B will pay $4,000.
B Company A will pay $12,000; Company B will pay $12,000.
C Company A will pay $24,000; Company B will pay $0.
D Company A will pay $16,000; Company B will pay $8,000.

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