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Darcy Inc. has historically purchased separate policies for property insurance and liability insurance. Each of the policies had $3 million retention. The company is now

Darcy Inc. has historically purchased separate policies for property insurance and liability insurance. Each of the policies had $3 million retention. The company is now considering the purchase of a bundled policy which covers both property and liability exposures. The retention of the bundled policy is to be $6 million. Draw a graph illustrating the areas of unnecessary coverage that will exist if Darcy continues with separate policies.


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