A contractor's insurance policy has a $1,000 deductible and covers 80% after deductible. For a $15,000 claim, how much does the contractor pay?
Correct Answer
C) $3,800
Contractor pays: Deductible ($1,000) + 20% of remaining amount (20% × $14,000 = $2,800) = $3,800 total.
Why This Is the Correct Answer
Contractor pays: Deductible ($1,000) + 20% of remaining amount (20% × $14,000 = $2,800) = $3,800 total.
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