The owner of a property has an insurance contract that has an 85% coinsurance clause and $2,000 deductibles (deducted from the total value of the loss). The property got damaged, and the value of this damage amounted for 20% of its actual value, which at the time of loss was $60,000. Given this information, answer the following questions showing your work and your reasoning if necessary:

1- Summarise the information given in the paragraph above, showing the following:

a. Actual value of the property at the time of loss

b. Required amount of insurance

c. Deductibles

d. The monetary amount of damage in dollars (value of loss).

2- The owner of the property insured the property at a value of $55,000:

a. Did the owner meet the required amount of insurance?

b. Calculate the amount of recovery (the amount of money the insurer has to pay toward these losses).

c. Calculate the amount of money the owner has to pay toward the losses.

3- The owner of the property insured the property at a value of $35,700:

a. Did the owner meet the required amount of insurance?

b. Calculate the amount of recovery (the amount of money the insurer has to pay toward these losses).

c. Calculate the amount of money the owner has to pay toward the losses.

Question 2: Assume James had a surgery. The bills for his surgery amounted for a total of $16,000. James has a health insurance that includes all the procedures the surgery required. However, his insurance policy requires him to pay deductibles of $1,000, and the policy has a 70-30 percent (insurer insured) coinsurance clause. Given the information above, calculate (showing your work):

1- How much James has to pay,

2- How much the insurance company has to pay.

Subject: Insurance