Florida Insurance Claims Adjuster License Practice Exam

What is 'The deductible' in insurance terms?

1. The amount added to the insurance premium

2. The amount paid by the insurance to the insured

3. The dollar amount paid by the insured before the insurer pays the remainder

4. The total amount insured

The correct answer is: The dollar amount paid by the insured before the insurer pays the remainder

The deductible in insurance terms refers to the dollar amount that the insured is responsible for paying before the insurance company covers the remainder of the cost. Option A is incorrect because the deductible is not added to the insurance premium; instead, it is subtracted from the amount the insurance company will pay. Option B is incorrect because the insurance company is not paying the deductible amount, it is the responsibility of the insured. Option D is incorrect because the deductible is not the total amount insured, it is just a portion that the insured must pay themselves.