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David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $2.

David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $2.4 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $80,000?

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The consideration that David will collect, if the... View the full answer

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