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Insurance
A Building is insured for $200,000 with commercial property insurance policy.A policy has an 80% coinsurance clause.A building had a flood and incurred a $50,000 loss.A replacement cost of the building at the time of the flood was $500,000.
Show work, calculations, and small explanation
1. What is the insurer's liability for the loss?
2. If the building carried a $500,000 property insurance policy whilst incurring the loss, how much would the building collect?
20000x 120 24000 direct labor nursing hours budgeted overhead 24000 hrs 42000 fixed plus 6000 variable 48000 actual
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