Lesson 4 unit 2 question
by Rosemary 1 Wampler1 - The co-insurance question does not deduct the $500 from the $3500 answer. Why?
loss of $5000 insurance for $70,ooo value $125,000
5,000 x 70,000 over 125,000 x .8
5,000 x 70,000 over 100,000
5,000 x .7 equals $3500
3500 - 500 deductible equals 3000
Rosemary
Re: Lesson 4 unit 2 question
by Jan Bradburn- - Yo iu do not subtract the deductible in a co-insurance problem. When property is not insured to value, you work the coinsurance problem to get the correct answer.