PracticeProblems-Topic11-Spring2011 - RMI2101 PRACTICE...

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1 RMI 2101 P RACTICE P ROBLEMS T OPIC  11 S PRING  2011 1. Suppose you have two fire insurance policies from different insurers, Company A and Company  Z.  The face amount of the policy from Company A is $140,000 and from Company Z, $240,000. a. A covered loss occurs in the amount of $80,000.  What would you collect from each  company assuming a primary excess rule is in effect and Company A is primary? [2] b. Suppose the loss amount were $120,000.  How would your answer change? [2] c. What condition would have to be met in order to collect from both companies?[2] 2. A well-established business in Dallas, Phillips, Inc., happens to be covered by the same insurers -  Company A and Company Z.  Company A provides $100,000 worth of coverage while the face  amount of the policy from Company Z is $180,000. a. 
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This note was uploaded on 10/17/2011 for the course RISK MANAG 2101 taught by Professor Drennan during the Spring '07 term at Temple.

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PracticeProblems-Topic11-Spring2011 - RMI2101 PRACTICE...

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