Frank, Mary and Sally recently purchased a building together…
Frank, Mary and Sally recently purchased a building together . Frank purchased $100,000 of insurance on the building, Mary purchased $50,000 of insurance and Sally purchased $150,000 of insurance. All three of the BPP insurance policies have identical terms, conditions and provisions (i.e. no excess or primary specifications), and each contained an “other-insurance” clause found in the ISO Commercial Property Conditions form. The day after they purchased their BPP insurance policies, a covered loss caused $15,000 in damage to the building. How much of the loss did Frank’s insurance company pay? (Ignore deductible and coinsurance provisions.)