Actuarial Notes

Exam DISC-IA Practice Question 622

Study guide: Exam DISC-IA

A building is insured for $750,000 with a 90% coinsurance percentage and a $2,500 deductible. The declarations also show the agreed value optional coverage with an agreed value of $750,000, in effect at the time of loss. By then the building's value has risen to $1,000,000. A fire causes a $200,000 loss. How much does the insurer pay?

  • A) $147,500
  • B) $164,166.67
  • C) $197,500
  • D) $200,000

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