Texas Adjuster Practice Test

How much will be paid for stolen electronics and clothing valued collectively at $7850 with a 1% deductible applied to an $85,000 COV A limit?

1. $7100

2. $6950

3. $7200

4. $7050

The correct answer is: $7100

To determine the amount that will be paid for the stolen electronics and clothing, it is vital to first apply the deductible to the total value of the loss. In this scenario, the total value of stolen items is $7,850, and there is a 1% deductible calculated from the Coverage A limit of $85,000. The deductible is calculated as follows: 1. **Calculate the deductible amount**: 1% of $85,000 is $850. Next, to find the amount that will be paid after applying the deductible, subtract the deductible from the total loss: 2. **Subtract the deductible from the total loss**: - Total loss: $7,850 - Deductible: $850 - Amount paid: $7,850 - $850 = $7,000. Upon reviewing the choices, the correct answer should reflect this calculation. However, the available answer choices must be considered. The answer of $7,100 represents a miscalculation as it does not align with the correct deduction process. Identifying the correct answer requires understanding how deductibles work in insurance claims and ensuring the calculations are aligned with the actual values provided in the situation. It’s important to carefully