Greenfield purchased a building ten years ago for $400,000. Since then, the company has maintained the same $400,000 building limit on its commercial property insurance policy. This policy has an 80 percent co-insurance clause and a $10,000 deductible. Recently Greenfield had a tornado claim for $330,000 in damages to the building. When the insurance company adjuster examined the property she discovered the building had an Actual Cash Value of $600,000. Which of the following payments is the insurer likely to make to Greenfield?

Greenfield purchased a building ten years ago for $400,000. Since then, the company has maintained the same $400,000 building limit on its commercial property insurance policy. This policy has an 80 percent co-insurance clause and a $10,000 deductible. Recently Greenfield had a tornado claim for $330,000 in damages to the building. When the insurance company adjuster examined the property she discovered the building had an Actual Cash Value of $600,000. Which of the following payments is the insurer likely to make to Greenfield?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

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