Group of answer choices:
A) Payment = Loss - Deductible
B) Payment = Loss + Deductible
C) Payment = Loss x Deductible
D) Payment = Loss / Deductible
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 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).
