Which formula best describes the amount an insurance company will pay you for your loss?

Question

Which formula best describes the amount an insurance company will pay you for your loss? a) payment = loss - deductible b) payment = loss + deductible c) payment = loss x deductible d) payment = loss / deductible

Alphonso Olson · Accepted Answer

A) Payment = Loss - Deductiblebecause you always need to pay your deductible so you won't get this amount of money back

Alphonso Olson · Answer

The correct answer is letter "A": Payment = Loss - Deductible.Explanation:The insurance deductible is a specific amount the insured's payment must reach usually per year, so that the insurance company benefits start to apply taking care of the bills and services according to the insured condition. In the case where a particular insured submits too many claims within the same valid insurance period, deductibles work like cushions.In that case, if a claim is covered by the insurance policy, they can pay the amount of a loss subtracting the deductible (Payment = Loss - Deductible).

Alphonso Olson · Answer

Group of answer choices:A) Payment = Loss - DeductibleB) Payment = Loss + DeductibleC) Payment = Loss x DeductibleD) Payment = Loss / DeductibleThe correct answer is letter "A": Payment = Loss - Deductible.Explanation:The insurance deductible is a specific amount the insured's payment must reach usually per year, so that the insurance company benefits start to apply taking care of the bills and services according to the insured situation. Deductibles work like cushions in the case one particular insured submit too many claims within the same insurance valid period.In that case, if a claim is under the service terms of the insurance they can pay the amount of a loss subtracting the deductible (Payment = Loss - Deductible).

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Which formula best describes the amount an insurance company will pay you for your loss?

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