What is the deductible amount referenced in the policy terms?

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Prepare for the Texas Statutes and Rules Pertinent to Property and Casualty Insurance Test with flashcards and multiple-choice questions. Each question includes hints and explanations. Ace your exam effortlessly!

Multiple Choice

What is the deductible amount referenced in the policy terms?

Explanation:
The deductible is the portion of a covered loss that you must pay before the insurer starts paying. The policy terms specify a deductible of $250, so for any covered loss you would pay the first $250, and the insurer would pay the remaining amount up to the policy limits. If the loss is less than $250, the insurer would pay nothing because the deductible hasn’t been met. The other options would change your out-of-pocket cost or premium, but the terms here set the deductible at $250.

The deductible is the portion of a covered loss that you must pay before the insurer starts paying. The policy terms specify a deductible of $250, so for any covered loss you would pay the first $250, and the insurer would pay the remaining amount up to the policy limits. If the loss is less than $250, the insurer would pay nothing because the deductible hasn’t been met. The other options would change your out-of-pocket cost or premium, but the terms here set the deductible at $250.

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