The insured purchased a $200,000 extra expense policy. If the percentages applying to the limit of insurance are 40%, 80%, and 100%, what would be the maximum payable for a 47-day loss?

To determine the maximum payable for a 47-day loss under an extra expense policy with a $200,000 limit and specified percentages, we need to calculate the total funding available based on the given percentages and the duration of the loss.

In this scenario, the percentages (40%, 80%, and 100%) indicate different levels of coverage depending on the duration of the disruption. The percentages typically represent the readiness of the insured to incur extra expenses, with 100% applicable for the longest recovery period. Since the loss duration is 47 days, we look at the highest percentage that applies, which is 100%.

To find the maximum amount payable for the loss of 47 days:

• Calculate 100% of the limit: 100% of $200,000 = $200,000.

• As the loss falls within this coverage, the total amount pay-out for expenses incurred due to the loss would be limited to the total of the insurance policy.

Thus, the total maximum payable for a 47-day loss, under the terms of the policy, would be $200,000. However, when making calculations based on the specific options presented and understanding typical insurance policy limits and loss adjustment, one would consider how these percentages may work