Reference no: EM132628521

Question - Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?

A) each policy: $120,000

B) policy A: $240,000; policies B and C: $60,000 each

C) policy A: $160,000; policies B and C: $100,000 each

D) policy A: $360,000; policies B and C: nothing