(a) Explain the meaning of a coinsurance clause.

(b) Suppose that the insurance amount of a property insurance plan on a 20-year-old building is $90,000 with deductible amount of $500, the value of the building at the time of the loss is $100,000, the lifetime of the building is 80 years and the coinsurance percentage is 90%. A damage on the building occurs and the cost to repair the covered damage is $20,000. What will be the loss payment received from the insurer if it is a replacement cost policy? (3 marks]

(c) With the same situation in part (b), if the insurance amount of property insurance plan on the 20-year-old building is $45,000, what will be the loss payment received from the insurer? [2 marks]

(d) With the same situation in part (b), if the insurance amount of property insurance plan on the 20-year-old building is $100,000, what will be the loss payment received from the insurer? [2 marks

(e)

With the same situation in part (b), if the building is totally damaged, what will be the loss payment received from the insurer? [2 marks]

(f) With the same situation in part (b), what will be the loss payment received from the insurer if it is a standard property insurance policy?