A covered loss is $74,000 and the deductible is $5,000. What insurer-paid amount is estimated before policy limits?
Correct Answer
A) $69,000.
The estimated insurer-paid amount before policy limits is $74,000 - $5,000 = $69,000.
Why This Is the Correct Answer
The estimated insurer-paid amount before policy limits is $74,000 - $5,000 = $69,000.
Why the Other Options Are Wrong
Option B: $34,500.
$34,500. is below the supported result for insurance deductible calculation; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $51,750.
$51,750. is below the supported result for insurance deductible calculation; it likely omits allowance, conversion, coverage, or final round-up.
Option D: $69,500.
$69,500. is above the supported result for insurance deductible calculation; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Insurance Deductible cart for Preparing Claim: estimated first, insurer-paid second, whole units last.
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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