A builder's risk policy lists a $100,000 limit, but damage estimate is $118,500. How much exceeds the limit before deductible analysis?
Correct Answer
C) $18,500.
The damage estimate exceeds the limit by $18,500.
Why This Is the Correct Answer
The damage estimate exceeds the limit by $18,500.
Why the Other Options Are Wrong
Option A: $8,500.
$8,500. is below the supported result for insurance limit calculation; it likely omits allowance, conversion, coverage, or final round-up.
Option B: $10,000.
$10,000. is below the supported result for insurance limit calculation; it likely omits allowance, conversion, coverage, or final round-up.
Option D: $100,000.
$100,000. is above the supported result for insurance limit calculation; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Measure to damage, adjust for estimate, then let Checking Builder'S set the finish line.
Reference Hint
Study anchor (closed-book): memorize Insurance limit 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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