What is the deductible amount referenced in the policy terms?

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Prepare for the Texas Statutes and Rules Property and Casualty Insurance Test. Study with flashcards and multiple choice questions, each with hints and explanations. Ensure you're geared up for success!

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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