If a $430 loss occurs and there is a $300 deductible under Specified Perils, what would the insurer pay?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Other Than Life (OTL) Agent's Exam with our comprehensive quiz. Featuring multiple choice questions and detailed explanations, our quiz is designed to enhance your knowledge and test-taking skills, ensuring you're well-prepared for exam day. Start studying today!

Multiple Choice

If a $430 loss occurs and there is a $300 deductible under Specified Perils, what would the insurer pay?

Explanation:
A deductible is the portion of a loss that the insured must pay before the insurer pays anything. With a 430 loss and a 300 deductible, the insured covers 300, and the insurer covers the rest: 430 − 300 = 130. Under Specified Perils, this calculation is the same—the deductible reduces the amount the insurer pays, provided the loss exceeds the deductible.

A deductible is the portion of a loss that the insured must pay before the insurer pays anything. With a 430 loss and a 300 deductible, the insured covers 300, and the insurer covers the rest: 430 − 300 = 130. Under Specified Perils, this calculation is the same—the deductible reduces the amount the insurer pays, provided the loss exceeds the deductible.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy