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Noah has two insurance policies covering his home. The policy from Company A has a limit of $100,000 and the policy from Company B has

Noah has two insurance policies covering his home. The policy from Company A has a limit of $100,000 and the policy from Company B has a $300,000 limit. A tornado blows the roof off Noah's house, and it will cost $60,000 to replace. How much of the loss will be paid by Company A under a "pro rata" other insurance clause?

a)

$0

b)

$60,000

c)

$30,000

d)

$20,000

e)

$15,000

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