A policy deductible is $2,500 and a covered property loss is $18,750. What loss amount remains after the deductible before other policy limits?
Correct Answer
B) $16,250.
Subtract the deductible from the covered loss: $18,750 - $2,500 = $16,250.
Why This Is the Correct Answer
Subtract the deductible from the covered loss: $18,750 - $2,500 = $16,250.
Why the Other Options Are Wrong
Option A: $2,500.
$2,500. is below the supported result for insurance deductible calculation; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $18,750.
$18,750. is above the supported result for insurance deductible calculation; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Option D: $21,250.
$21,250. is above the supported result for insurance deductible calculation; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Measure to subtract, adjust for covered, then let Estimating Builder'S set the finish line.
Reference Hint
Study anchor (closed-book): memorize Insurance deductible calculation from CSLB 2026 Law Book; CSLB workers' compensation guidance; California. / CSLB Law Book insurance study concepts; know the rule or calculation trigger without relying on exam-room lookup.
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