Douglas obtained a $100,000 insurance policy on his warehouse. The policy contained an 80 percent coinsurance clause. An accidental fire totally damaged the building that had a fair market value of $250,000 at the time of the loss. How much will Douglas recover from his insurance company?

A. $100,000
B. $80,000
C. $250,000
D. $200,000


Answer: A

Business

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Business

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What will be an ideal response?

Business