1. Consider your house or your parents house is 45 years old?
2. Assume that the house has a useful life of 75 years; what is the percentage of depreciation?

3. If it would cost $100,000 to rebuild the house today, what is the Actual Cash Value of the house?

2. A drunk driver ran a red light and smashed into Josies car. The cost to repair the car is $8,000. She is unable to collect from the drunk driver. She has collision insurance on her car with a $500 deductible.
   1. Explain how the principle of subrogation would be relevant in this case.

2. Explain how subrogation supports the principle of indemnity.

3. Daisha owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. The policy contains an 80% coinsurance clause. The warehouse sustained a $50,000 loss because of a fire in a storage area. The value of the warehouse at the time of loss is $500,000. What is the insurers liability, if any, for this loss? Show your work.

4. Daisha also owns a commercial office building that is insured under three property insurance contracts. She has $100,000 of insurance from Company A, $200,000 from Company B, and $200,000 from Company C. Assume that the pro-rata liability provision appears in each contract.
   1. If a $100,000 loss occurs, how much will Daisha collect from each insurer? Show your work or explain your answer.

2. What is the purpose of the other-insurance provisions that are frequently found in insurance contracts?

- 1. Consider your house or your parent's house (or one that you are very familiar with). 2. What is the age of the house? b. Assume that the house has a useful life of 75 years; what is the percentage of depreciation? c If it would cost $100,000 to rebuild the house today, what is the Actual Cash Value of the house? 2. A drunk driver ran a red light and smashed into Josie's car. The cost to repair the car is $8,000. She is unable to collect from the drunk driver. She has collision insurance on her car with a $500 deductible. 2 Explain how the principle of subrogation would be relevant in this case. b. Explain how subrogation supports the principle of indemnity. 3. Daisha owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. The policy contains an 80% coinsurance clause. The warehouse sustained a $50,000 loss because of a fire in a storage area. The value of the warehouse at the time of loss is $500,000. What is the insurer's liability, if any, for this loss? Show your work 4. Daisha also owns a commercial office building that is insured under three property insurance contracts. She has $100,000 of insurance from Company A $200,000 from Company B, and $200,000 from Company C. Assume that the pro-rata liability provision appears in each contract. 2. If a $100,000 loss occurs, how much will Daisha collect from each insurer? Show your work or explain your answer. b. What is the purpose of the other-insurance provisions that are frequently found in insurance contracts? - 1. Consider your house or your parent's house (or one that you are very familiar with). 2. What is the age of the house? b. Assume that the house has a useful life of 75 years; what is the percentage of depreciation? c If it would cost $100,000 to rebuild the house today, what is the Actual Cash Value of the house? 2. A drunk driver ran a red light and smashed into Josie's car. The cost to repair the car is $8,000. She is unable to collect from the drunk driver. She has collision insurance on her car with a $500 deductible. 2 Explain how the principle of subrogation would be relevant in this case. b. Explain how subrogation supports the principle of indemnity. 3. Daisha owns a small warehouse that is insured for $200,000 under a commercial property insurance policy. The policy contains an 80% coinsurance clause. The warehouse sustained a $50,000 loss because of a fire in a storage area. The value of the warehouse at the time of loss is $500,000. What is the insurer's liability, if any, for this loss? Show your work 4. Daisha also owns a commercial office building that is insured under three property insurance contracts. She has $100,000 of insurance from Company A $200,000 from Company B, and $200,000 from Company C. Assume that the pro-rata liability provision appears in each contract. 2. If a $100,000 loss occurs, how much will Daisha collect from each insurer? Show your work or explain your answer. b. What is the purpose of the other-insurance provisions that are frequently found in insurance contracts