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Martin owns a property valued at $36 million dollars. Because the property is expensive, Martin has three insurance contracts for this property from different insurers. His contract with ABC insurance

Martin owns a property valued at $36 million dollars. Because the property is expensive, Martin has three insurance contracts for this property from different insurers. His contract with ABC insurance is for $18 million. The contract with DEF insurance is for $12 million. The contract with GIH insurance is for $6 million. These contracts include an other-insurance provision, which states that losses will be covered by the three insurers by contribution by equal share. 1- One day, a $9 million loss incurred to the property. Explain how this loss will be covered by three insurance companies (and calculate how much each company will cover). (3 marks) 2- Another day, a $33 million loss incurred to the property. Explain how this loss will be covered by three insurance companies (and calculate how much each company will cover). 

Apr 13 2021 View more View Less

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