Hawaii Insurance License Practice Exam

If a business has $10K in contents and $3K in cash stolen with a $250 deductible, how much will the insurance payout be?

1. $9,250

2. $9,500

3. $9,750

4. $10,000

The correct answer is: $9,750

To determine the insurance payout in this scenario, you need to combine the values of the business contents and the cash stolen, and then subtract the deductible amount. The total value of the items stolen includes $10,000 in contents and $3,000 in cash, bringing the total to $13,000. After this total is established, the deductible of $250 is applied. The deductible is the portion of a loss that the insured must pay out of pocket before the insurance coverage kicks in. Therefore, the correct calculation is as follows: 1. Total stolen: $10,000 (contents) + $3,000 (cash) = $13,000 2. Subtract the deductible: $13,000 - $250 = $12,750 However, the output of $12,750 does not correspond to any listed choices, indicating the previous assumptions about coverage might not fully account for the specifics in the options. If we are considering the total take-home payout for the covered items alone (contents, since cash is sometimes treated differently in some policies), that calculation would simply be $10,000 - $250 = $9,750. This value represents the payout concerning only the contents, where the cash might not