Types of Insurers and Marketing Systems
Julia owns a building worth $800,000. She insures the building for $300,000 with Company A, $400,000 with Company B, and $100,000 with Company C. There is a fire, and the building sustains $100,000 in damage.
- How much will Julia collect in insurance?
- How much will each company pay?
- What insurance term describes this situation?
- What is its purpose?