Question

Johann maintains a$75,000 insurance policy on his boat. He pays $50 per month in premium and his deductible is $2,500 if he is involved in a accident and make a claim of 15,000 on the policy, how much will his insurance company pay ?

A. $2,500
B.$12,500
C.$15,000
D.$17,500

Answer 1

B) 12,500

Explanation:

Just took the quiz :)

Answer 2

1) Cover = $75,000
2) Claim = 15,000

=> the claim is covered

3) deductivle =$2,500

=> payment = cover minus deductible = $ 15,000 - $ 2,500 = $12,500

Answer: option B. $12,500