Gerald Tee has a $50,000 property loss. His insurance policy's coverage limit is $35,000, and has a $500 deductible applied to the policy. How much will Gerald collect?
A) $50,000
B) $49,500
C) $35,000
D) $34,500

Question

Quizplus · Accepted Answer

Gerald's insurance policy will only provide coverage up to the policy's coverage limit of $35,000, minus the deductible of $500. Hence, the maximum amount that Gerald can collect is $34,500 ($35,000 - $500).

Gerald Tee Has a $50,000 Property Loss