What is the result of the pro-rata calculation for the husband's policy in the example given?

The pro-rata calculation method in insurance is used to determine how much an insurer will pay when multiple policies cover the same loss. In this context, it involves distributing the payout based on the limit of each policy relative to the total coverage.

In the example given, the husband's policy is evaluated in conjunction with other applicable policies to determine the share of the loss for which it is responsible. If it is established that the total loss amount incurred is $50,000 and the husband's policy has a certain limit (presumably lower than the total loss), the pro-rata formula would allocate a payment based on the proportion of his policy limit to the total limits of all policies involved.

For option B to be the correct answer, the calculations must show that, given the total insurance coverage available, the husband's policy is directly responsible for covering $33,500 of the loss. This suggests that other policies either do not cover losses or contribute to a smaller extent, leading to this amount being relevant to his policy's limit.

Understanding this process hinges on recognizing the interplay between multiple coverages and how each contributes to the resolution of a claim. The principle of indemnity ensures that the insured does not profit from an insurance loss while receiving compensation aligned with their coverage limits.