Pro-Rata Flashcards
1) A popular coffee shop is covered under 2 pro-rata policies. The first policy has a limit of $40,000 and the second policy has a limit of $60,000. In the event of a $10,000 loss how much will each of the policies pay?
1st = $4,000
2nd = $6,000
2) The town library is covered by 3 different policies all covering the same loss. Policy A has a limit of $10,000 policy B has a limit of $20,000 and policy C has a limit of $40,000. How much will be paid by each policy on a $21,000 loss?
A = $3,000
B = $6,000
C = $12,000
3) Mr. Harrison has a building insured by 3 different contributory policies. There is an $18,000 fire loss to the building. Policy #1 has a limit of $10,000 policy #2 has a limit of $30,000 and policy #3 has a limit of $20,000. How much will each policy pay for this loss?
A = $3,000
B = $9,000
C = $6,000
