Florida Insurance Claims Adjuster License Practice Exam

What occurs once the loss equals or exceeds the franchise deductible?

1. The loss is partially paid

2. No payment is made

3. The loss is paid in full

4. The deductible is doubled

The correct answer is: The loss is paid in full

An explanation could be Once the loss equals or exceeds the franchise deductible, the insurance company will pay the full amount of the loss. This means that they will cover the entire cost of the loss, up to the maximum amount specified in the deductible. Option A is incorrect because the loss is not partially paid, it is paid in full. Option B is incorrect because some payment is made, as stated in option A. Option D is incorrect because the deductible is not doubled, it is simply the maximum amount that the insurance company will cover.