Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 140

Find the amount paid by insurance in the following problems involving multiple carriers. Assume that the coinsurance requirement is met. (See Example.)
Understanding Multiple-Carrier Insurance
Youngblood Apartments has an insured loss of $1,800,000 while having insurance coverage beyond its coinsurance requirement. The insurance is divided among Company A wit $5,900,000 coverage, Company B with $4,425,000 coverage, and Company C with $1,47 coverage. Find the amount of the loss paid by each of the insurance companies.
SOLUTION
Start by finding the total face value of all three policies.

Since the insurance loss is $1,800,000, the amount paid by each of the multiple carriers is