a. b. What is 'average' in the context of insurance? 2 marks Calculate the claims payable for the following loss under the two methods: pro rata average in United Kingdom 85% American term co-insurance Value at risk Sum insured Loss $11,000,000 $8,800,000 $1,500,000 Explain your answers and show all your calculations. 4 marks C. Pony Toy has purchased a property all risks insurance policy for its stock-in- trade at a sum insured for $6,000,000. Yesterday, a fire broke out at Pony Toy's main store causing a total loss of its stock. However, in claims adjustments, the insurance company found that the value at risk was actually $7,600,000 at the time of loss. What are the claims payable to Pony Toy respectively under these two methods: 90% Australian term pro rata average 80% American term co-insurance in regards to the following two separate losses? (i) $5,000,000 (ii) $280,000 Explain your answers and show all calculations