What is the rateable proportion payable by insurer A if it covers a camera valued at £500 and insurer B covers it for £250?

To determine the rateable proportion payable by insurer A, we first need to calculate the total value covered by both insurers and then establish the proportionate contribution of each insurer based on their individual coverage amounts.

Insurer A covers the camera for £500, while insurer B covers it for £250. The total insurance coverage for the camera is £500 + £250 = £750.

Now, we calculate the proportion of the total coverage that insurer A represents. This is done by taking the amount covered by insurer A, which is £500, and dividing it by the total coverage amount of £750:

[ \frac{500}{750} = \frac{2}{3} ]

This fraction shows that insurer A is responsible for two-thirds of any claim that might arise concerning the camera. Therefore, if a claim were made, insurer A’s rateable proportion of the payment would indeed be two-thirds.

This approach reflects the principle of contribution in insurance, which requires that when multiple insurers cover the same risk, they pay out in proportion to their respective coverage amounts. This ensures fairness and prevents the insured party from profiting from overlapping insurance coverage.

Thus, the calculation confirms that C (2/3) is the correct answer,