claims paid by insurers in the event of loss is irrecoverable when the?
average clause is applied
sum insured has been exhausted
sum insured has not been exhausted
payment is and ex gratia basis
Correct answer is A
average clause. is an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured.