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Assume that a $400,000 liability claim is covered under two liability contracts. Policy A has a $600,000 limit of liability for the claim, while Policy

Assume that a $400,000 liability claim is covered under two liability contracts. Policy A has a $600,000 limit of liability for the claim, while Policy B has a $145,000 limit of liability for the claim. Both contracts provide for contribution by equal shares.

A) How much will each insurer contribute towards a claim? Explain your answer

B) IF the claim was $50,000, how much would each insurer pay?

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