Question

Haru became a Farmers customer six months ago after leaving his former carrier due to a disappointing claim experience. He was eager to get that claim behind him and qualify for the claim-free discount at Farmers. What is the true statement?

a. Haru will not qualify for the claim-free discount.

b. Haru will qualify for the claim-free discount.

c. Haru's claim experience does not affect discounts.

d. Haru should switch carriers again.

Answer 1

Haru will not qualify for the claim-free discount at Farmers if he had a recent claim with his former insurer six months ago and Farmers requires a longer claim-free period for eligibility.

Step-by-step explanation:

Whether Haru will qualify for the claim-free discount at Farmers Insurance depends on the specific terms and conditions of the insurance policy Farmers offers. Typically, insurance companies offer a claim-free discount to policyholders who have not filed any claims for a certain period of time. This is generally meant to reward customers who have been low-risk and therefore less costly to insure.

In Haru's case, if Farmers' policy stipulates that a customer must be claim-free for a certain duration (for example, three years) before qualifying for the discount, and Haru left his previous insurer due to a claim there six months ago, then a. Haru will not qualify for the claim-free discount, since he has a recent claim on his record.