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if carissa dalton has a $400,000 home insured for $312,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a claim of $17,000? assume there is no deductible. (do not round intermediate calculations. round your answer to 2 decimal places.)

Respuesta :

The insurance company would pay $16,575  on a claim of $17,000 based on the coinsurance formula.

0.80 × 400,000 = 320,000

(312,000 /320,000) × 17,000

= $16,575

Coinsurance Formula

Amount paid = (Insurance coverage / Coinsurance requirement) × Claim amount

(coinsurance req. = value of home * %)

The coinsurance formula is the homeowner's insurance formula that determines how much a homeowner will be reimbursed for a claim. When a homeowner fails to maintain coverage of at least 80% of the home's replacement value, the coinsurance formula kicks in. Those who file a claim in this situation will only receive a partial reimbursement based on the formula. The coinsurance formula determines how much a homeowner or property owner will be reimbursed for a claim.

For more information on the Coinsurance formula, visit :

https://brainly.com/question/14292864

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