Which one (1) of the following poticy? OA) If the amount of the los greater than the deduct من From the amount of the OC) The amount of the dedu D) The amount of the deduc
Which one (1) of the following poticy? OA) If the amount of the los greater than the deduct من From the amount of the OC) The amount of the dedu D) The amount of the deduc
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Transcribed Image Text:which one (1) of the following statements is correct regarding the application of a "Deductibile Clause in a property
poticy?
amount
of the loss.
covered in full.
OA) If the amount of the loss is less than the amount of the deductible, no indemnity is paid, but the
greater than the deductible, the loss is paid in full.
in settlement
From the amount of the loss, the deductible is subtracted and the balance is paid
OC) The amount of the deductible is subtracted from the sum insured. Losses up to this amount
OD) The amount of the deductible is added to the premiurn and all losses are covered
in fult,
are
insurance
of the loss is
Transcribed Image Text:79 of 90
Which one (1) of the following clauses in a property insurance
policy does NOT affect the amount of settlement an insured
would receive as a result of an insured loss?
Co-insurance clause.
Deductible clause.
Pro-rata distribution clause.
All perits rider.
Expert Solution
Step 1: Introduction
In the context of property insurance, a deductible clause is a crucial component that outlines the financial responsibility of the policyholder when making a claim. This clause defines the amount the policyholder must pay out of their own pocket before the insurance company begins covering the remaining losses. This question seeks to identify the correct statement regarding the application of a deductible clause in a property insurance policy. It's important for policyholders to understand the implications of deductibles, as they can significantly affect the extent of coverage and the cost of insurance premiums.
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