If an insured purchased a $200,000 extra expense policy and incurs costs for a 47-day loss, what is the maximum payable amount if the percentages are 40%, 80%, and 100%?

To determine the maximum payable amount under a $200,000 extra expense policy, one needs to understand how the percentages are applied to the duration of the loss. In this scenario, the insured experiences a 47-day loss, and the policy provides coverage based on specific percentages.

When calculating the maximum payable amount, the percentages represent coverage levels for different segments of the loss duration. Given that the specific percentages are 40%, 80%, and 100%, these percentages likely correspond to the portion of the loss covered over specified time frames.

The first part of the period may be covered at a lower percentage, leading to a 40% coverage, but as time progresses, a more extensive portion of expenses incurred can be covered at higher percentages.

In this case, if you consider how those percentages could typically apply over the course of a loss spanning 47 days, it is reasonable to calculate as follows:

• The first segment of time (for instance, the first few days) could be covered at 40%.

• Continuing into the policy period, higher percentages could kick in, allowing for a cumulative effect leading to a total potential coverage nearing the policy limit.

Applying this logic, if you sum the maximum allowable expenses covered based on the percentages and