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Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and
Lisa has three fire insurance policies on her office building. The policy from company A is for
$400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss,
how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the
insurers?
A)
each policy: $120,000
B)
policy A: $240,000; policies B and C: $60,000 each
C)
policy A: $160,000; policies B and C: $100,000 each
D)
policy A: $360,000; policies B and C: nothing
How do I figure it out? Step by step please
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