Question

In this situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied."

1) 10%
2) 20%
3) 50%
4) 90%

Answer 1

In this situation, the group insurance carrier will pay 90% of the covered loss after 90% the deductible has been applied. (option 4)

Step-by-step explanation:

In the given situation, the group insurance carrier will pay 90% of the covered loss after the deductible has been applied. This means that once the deductible is subtracted from the covered loss, the insurance carrier will cover 90% of the remaining amount.

For example, if the covered loss is $1,000 and the deductible is $100, the insurance carrier will pay 90% of the remaining $900, which is $810. Therefore, option 4) 90% accurately represents the percentage that the insurance carrier will cover after the deductible.

Understanding the terms and conditions of insurance coverage, including deductibles and the percentage covered by the insurance carrier, is crucial for individuals to assess their financial responsibility in the event of a loss. In this case, a higher percentage covered by the insurance carrier (90%) is more favorable for the policyholder as it reduces their out-of-pocket expenses after the deductible is applied.

In summary, option 4) 90% is the correct answer, reflecting the percentage that the group insurance carrier will pay of the covered loss after the deductible has been applied in this specific insurance scenario. (option 4)