Exam DISC-RM Practice Question 220
Study guide: Exam DISC-RM
A manufacturer buys business income coverage with a $1,000,000 limit and a 50% coinsurance percentage. Its net income and operating expenses for the 12 months after the policy's inception, less the expenses the form deducts, are projected at $2,400,000. A covered fire causes a business income loss of $300,000. Ignoring the waiting period, how much does the insurer pay?
- A) $125,000
- B) $250,000
- C) $300,000
- D) $360,000
Answer this question and see the worked solution