OLT-Breakroom: Lesson 4 unit 2 question

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- - Wednesday, 23 April 2008, 7:34 PM

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.