The property of lance's garage is worth $90,000. lance has a fire insurance policy of $40,000 that contains an 80% coinsurance clause. on a fire that causes $60,000 in damage, the insurance company pays a. $33,333.33. b. $33,334. 00 c. $27,777.78 d. $27,777.87

A. $33,333.33

Step-by-step explanation:

This is the amount which the owner should have had at the time of loss:

80% of $90,000 = $72,000

But instead of $72,000, the owner had only $40,000.

It means that the owner had maintained of the totoal amount of insurance he should have had.

Therefore, the company will pay of the amount of loss.

The correct answer option is A. $33,333.33.

what? ?

what type of question is thiss

step-by-step explanation: