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1. The insurance carrier used by Pinnacle Computer Systems specifies 65% coinsurance. The company recently incurred $420,000 in damages from flooding. The building was valued at $625,000, but was only insured for $320,000. What amount will be paid by the insurance company for the loss? (Round your answer to the nearest cent)

a. $411,240.59

b. $626,000.00

c. $292,400.00

d. $330,830.77

2. Which of the following is likely to be a material component of an insurer’s revenue?

a. interest on bonds

b. interest on mortgages

c. dividends on stocks

d. all of the above

2. Methods of dealing with risk include all the following except

a. retention

b. risk transfer

c. loss control

d. extinction

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92099782

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