An insured purchased three parcels of land valued as follows:
Parcel #1: $200,000
Parcel #2: $300,000
Parcel #3: $500,000
A $1,000,000 policy is issued covering all 3 parcels. When a problem developed regarding the title to parcel #2, the insured filed a claim for $400,000. He was told the company would pay only $300,000. This is because of which of the following?
A. The apportionment clause.
B. The co-insurance clause.
C. The non-cumulative liability clause.
D. The distribution clause.
