O-LevelCommerceInsurance7100/12 · Oct/Nov 2018 · Q281 Mark

Mrs Yip owns a factory valued at $400000. It is insured with two insurance companies, each having a 50% share in the cover to the value of $500000. Later, 25% of the factory was destroyed in a fire. How much would each insurance company pay Mrs Yip?

A$50000

B$62500

C$200 000

D$250000

✓ Correct answer

A: $50000

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Topic: Insurance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2018 Paper 1 Variant 2, question 28.

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