Hedda Purchased a Combine for Her Farm Worth $80 000,but

Multiple Choice

Hedda purchased a combine for her farm worth $80 000,but she could only afford to insure it for $40 000.The insurance has a co-insurance clause requiring coverage for 80% of the value,or $64 000 (meaning Hedda had only purchased 62.5% of the required coverage) .An accident causes damage to the combine worth $20,000.How much can Hedda recover?

A) She can recover the full $20 000.
B) She can recover 80% of $20 000 ($16 000) .
C) She can recover 62.5% of $20 000 ($12 500) .
D) She cannot retrieve any compensation.
E) She can recover $40 000.