A contractor carries general liability insurance with a $2,000 deductible and $500,000 coverage. For a claim totaling $25,000, how much will the insurance company pay?
Correct Answer
C) $23,000
The insurance company pays the claim amount minus the deductible: $25,000 - $2,000 = $23,000.
Why This Is the Correct Answer
The insurance company pays the claim amount minus the deductible: $25,000 - $2,000 = $23,000.
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