A Stuart insurance file has three covered losses of $4,200, $9,100, $1,100. The deductible is $5,000 per occurrence. What total deductible cost should be tracked administratively?
Correct Answer
D) $10,300
Per-occurrence deductible cost is the lesser of each loss and the deductible, summed across occurrences.
Why This Is the Correct Answer
Per-occurrence deductible cost is the lesser of each loss and the deductible, summed across occurrences.
Why the Other Options Are Wrong
Option A: $14,400
$14,400 is above the supported result for insurance deductible tracking; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $15,000
$15,000 is above the supported result for insurance deductible tracking; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $4,100
$4,100 is below the supported result for insurance deductible tracking; it likely uses the wrong base, period, or account bucket.
Memory Technique
Insurance Deductible drawer for Controller Summarizes: label per-occurrence before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Insurance Claims and Deductible Tracking; confirm the administrative duty, record, or control described in the stem.
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