1. Froogles house suffered $100,000 in fire damage. At the time of the fire Froogle maintained a fire insurance policy over the premises with Ubetcha Life and Casualty Insurance Co. in the amount of $300,000. The policy had an 80% co-insurance clause, and zero deductible. The fair market value of the entire premises at the time of loss was $1,500,000.

How much will Froogle collect from Ubetcha for the loss?

a. $2,500

b. $25,000

c. $100,000

d. $300,000

e. $1,500,000