Reference no: EM132762730

Problem 1: ATL Industries owns four entertainment complexes throughout the United States. The largest property exposure for any one entertainment complex is $25 million, and the company purchased a total of $40 million in layered property Insurance. Coverage A provides the first layer of $2 million deductible above a $1 million deductible. Company B provides the second layer, beginning at the $3 million attachment point and Company C provides the third layer. beginning at an $5 million attachment point. A hurricane nearly destroyed ATL's entertainment complex in Chicago, and covered losses totaled $30 million. Given this information, what dollar amount will Company C pay for this loss (Ignoring deductibles, coinsurance, etc)?

Option 1: Less than $5 million

Option 2: Between $5 million and $10 million

Option 3: Between $10 million and $15 million

Option 4: Between $15 million and $20 million

Option 5: More than $20 million QUESTION 25