Q1. Sarah has a house valued at $200,000 and insured for $180,000. It is totally

Question

Q1. Sarah has a house valued at $200,000 and insured for $180,000. It is totally destroyed by fire, due to the negligence of Courtney. Sarah recovers $180,000 from her insurer, which then subrogates against Courtney. Suppose the courts decide that Courtney must pay $100,000 in damages, because that's all the money she has. How much of this $100,000 can the insurer keep, assuming that the policy has no special provision regarding the distribution of subrogation amounts? (1 point)

A) $80,000 (Sarah gets the other $20,000)

B) $100,000 (Sarah will get no additional funds)

C) $20,000 (Sarah gets the other $80,000)

D) $0 (The entire $100,000 must be passed on to Sarah)

please explain

Explanation / Answer

Option b is choose for the relavent question. We can see how it is applicable

Value of house is 200000

Insured for. 180000

Reason : destroy the hiuse due to fire due negligence if Courtney.

Sarah want to recover the 180000 but surrogates are against and they decide to pay only 100000 without special provision.

These statements are assume then ony we can opt the option b .

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.