Ask Question
BusinessBusiness
30 January, 01:02

John Davis's store is worth $400,00 and is insured for $20,00. Assuming an 80% consurance clause and fire that caused $100,000 of damage, what is the liability of the insurance company?

+1
Answers (1)
  1. 30 January, 01:12
    0
    The liability of the insurance company would be $20,000 only. It's simply because the company is only insured for $20,000 therefor the insurance company would only be paying $20,000 to John Davis' store no matter how much the damage of the fire caused. So even if the fire would cause a lot of damage and incur a lot of costs due to the repairs, losses, etc. the insurance company will only be able to reimburse the damaged company $20,000 since that is what they signed up for in the first place.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “John Davis's store is worth $400,00 and is insured for $20,00. Assuming an 80% consurance clause and fire that caused $100,000 of damage, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The ZRB Company promises to ship LST INc. 200 units of product by a certain date, and LST Inc. promises to pay ZRB $25,000 for the product within 14 days of receipt. This is an example of a (n) A. defensible agreement. B. exempt contract. C.
Answers (1)
One advantage of nonfinancial measures is that managers directly involved in operations are likely to understand them.-true or false
Answers (1)
On April 30, 2005, Carty Corp. approved a plan to dispose of a segment of its business. The disposal loss is $480,000, including severance pay of $55,000 and employee relocation costs of $25,000, both of which are directly associated with the
Answers (1)
With a traditional savings account, you could be charged a fee if: You open an account online You close the account You deposit too much money at once You withdraw money too often
Answers (1)
Which of the following metrics represents the frequency of inventory replacement? Multiple Choice Inventory cycle time Customer order cycle time Back order Inventory turnover
Answers (1)
New Questions in Business
Suppose a salesperson tells you that one of his/her goals is to increase sales by the end of the month. Which of the following is probably your best response if the salesperson asked you for feedback related to the S. M. A. R. T. goal setting? a.
Answers (1)
You can use the tools of the marketing mix to create and adjust which strategy?
Answers (1)
Becton labs, inc., produces various chemical compounds for industrial use. one compound, called fludex, is prepared using an elaborate distilling process. the company has developed standard costs for one unit of fludex, as follows:
Answers (1)
When the economy is in a recession, the government can use expansionary fiscal policy to stimulate and encourage economic growth.
Answers (1)
Luker Corporation uses a process costing system. The company had $171,500 of beginning Finished Goods Inventory on October 1. It transferred in $848,000 of units completed during the period.
Answers (1)
Home » Business » John Davis's store is worth $400,00 and is insured for $20,00. Assuming an 80% consurance clause and fire that caused $100,000 of damage, what is the liability of the insurance company?
Sign Up Forgot Password?