Ace the 2025 RIBO Exam – Boost Your Insurance Broker Swagger!

To determine the payment from the insurer when a property has a coinsurance clause, you need to understand how coinsurance works. In this scenario, the property is insured for $100,000 with a 90% coinsurance requirement. This means the policyholder must carry insurance equal to at least 90% of the property's value to receive full coverage.

First, calculate the minimum required coverage based on the coinsurance clause. The required coverage would be 90% of $100,000, which equals $90,000. Since the property is indeed insured for $100,000, the policyholder meets the coinsurance requirement perfectly.

In the case of a $90,000 loss, the insurer will cover the entire amount since the insured value ($100,000) meets the necessary threshold for coinsurance and the loss does not exceed the insured amount. Therefore, the full amount of the loss, $90,000, will be paid out by the insurer.

This scenario illustrates the principle of coinsurance effectively, demonstrating that when proper insurance levels are maintained, the insured can recover losses without penalties or deductions associated with underinsurance.