When Tina suffers a loss of $75,000, how will her two policies respond?

To determine how Tina's two policies respond to her loss of $75,000, we need to consider how dual insurance policies often function. When a loss occurs, the insured generally looks for each policy to respond according to the terms of the coverage and their respective limits.

In the case where Policy X pays $60,000 and Policy Y pays $15,000, this distribution suggests that each policy has a specific limit that contributes toward the total loss. The combined payout of $75,000 effectively covers Tina's loss, meaning that both policies have been engaged to share the liability for the total amount incurred.

This answer correctly reflects the principle of contributing insurance, where multiple policies cover the same risk and pay based on their respective limits and the total loss amount. The correct approach to distribution is crucial to ensure that the policies work together appropriately in mitigating the financial impact on the insured.

While other options propose different distributions, they either do not sum to the total loss or misallocate the amounts paid by each policy based on the coverage limits, leading to an incorrect resolution of Tina's claim. In this context, the way the payouts align with the total loss demonstrates a key understanding in insurance operations -- namely, how multiple insurers can effectively coordinate to cover significant