An elimination (waiting) period is an example of a(n) A) ...

[Tazate]

An elimination (waiting) period is an example of a(n)
 
  A) exclusion.
  B) deductible.
  C) other-insurance provision.
  D) coinsurance provision.

Question 2

James purchased liability insurance with a 100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a 150,000 limit from Insurer B.
 
  Before he cancelled the policy with Insurer A, a 60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay?
  A) Insurer A will pay 10,000 and Insurer B will pay 50,000.
  B) Insurer A will pay 20,000 and Insurer B will pay 40,000.
  C) Insurer A will pay 24,000 and Insurer B will pay 36,000.
  D) Insurer A will pay 40,000 and Insurer B will pay 20,000.

[tofugiraffe]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: C