What is the calculation result if a husband's policy is $200,000 and the wife's is $100,000 for a $50,000 liability loss?

To understand the calculation for how much each policy pays for a liability loss, we need to look at the total coverage provided by both policies and how that relates to the liability loss incurred.

In this scenario, the husband's policy has a coverage limit of $200,000, while the wife's policy has a limit of $100,000. When a liability loss of $50,000 occurs, the issue is how to allocate this loss between the two policies based on their coverage limits.

First, we calculate the total amount of coverage available from both policies combined, which is $200,000 + $100,000 = $300,000. This total coverage must then be used to determine the proportionate share of each policy’s liability.

Next, to find each policy's share of the liability payment, we take the ratio of each policy's coverage to the total coverage. The husband's policy represents two-thirds of the total coverage ($200,000 out of $300,000), and the wife’s policy represents one-third ($100,000 out of $300,000).

To find out how much of the $50,000 liability loss each policy pays, we can apply these proportions to the total liability amount:

1. The husband’s share: (