a) Vic will provided insurance up to $150. On a $175 loss, he will pay $150?

b) Vic will provided insurance only on lots up to $150. On a $175 loss, he will pay $0 since the loss is over $150?

c) Vic provides no ins. and is not responsible for a loss of any amount. However he is warning you that $150 is a lot of money and you should buy insurance on amounts that he considers a lot of money.

Some help is needed here.