Hawaii Insurance License Practice Exam

Question: 1 / 400

How much will an insurer pay if an insured has a $100 deductible and sustains three separate occurrences totaling $300, $200, and $50?

$150

$200

$300

To determine how much an insurer will pay when there is a deductible involved, each occurrence must be considered against the deductible amount.

For this scenario, the insured has a $100 deductible, and there are three distinct occurrences with total costs of $300, $200, and $50. The deductible applies to each occurrence separately.

1. For the $300 occurrence, after applying the $100 deductible, the insurer will pay $300 - $100 = $200.

2. For the $200 occurrence, again, after applying the $100 deductible, the insurer will cover $200 - $100 = $100.

3. For the $50 occurrence, because this amount is less than the deductible, the insurer pays nothing.

Now, adding the amounts that the insurer pays for each occurrence together results in:

$200 (from the first occurrence) + $100 (from the second occurrence) + $0 (from the third occurrence) = $300.

This calculation shows that the total amount the insurer will pay is indeed $300.

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$350

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