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Question
Assume that the physical property of a business is valued at $50,000. The companys commercial property policy contains a coinsurance clause with a stated percentage of 80 percent. The company insures the property for $30,000 (75 percent of the specified minimum). The company incurs a fire loss of $20,000. How much of the loss will the insurance company pay for?
a. $0
b. $15,000
c. $20,000
d. $10,000
Answer
This answer is hidden. It contains 1 characters.
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