Jane purchased a 50,000 liability insurance policy from Insurer ...

[awywial]

Jane purchased a 50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional 100,000 of liability coverage from Insurer B.
 
  As a result of a negligent act, Jane was ordered to pay 75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?
  A) Insurer A will pay 50,000 and Insurer B will pay 25,000.
  B) Insurer A will pay 37,500 and Insurer B will pay 37,500.
  C) Insurer A will pay 25,000 and Insurer B will pay 50,000.
  D) Insurer A will pay nothing and Insurer B will pay 75,000.

Question 2

As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is called
 
  A) graded rates.
  B) agreed value coverage.
  C) retrospective rating.
  D) manual rating.

[kaylee05]

Answer to Question 1

Answer: A

Answer to Question 2

Answer: A

[awywial]

TYSM

[matt95]

Excellent