Final answer:
The insurer will pay $200 for the car seat damage caused by a fire when the insurance policy has a $300 deductible, and the damage is assessed at $500.
Step-by-step explanation:
Comprehensive coverage in automobile insurance typically includes situations such as damage caused by a fire. When an insured person has an Own Damage Policy 1 (OAP 1) with a $300 deductible, and a cigarette sets their car seat on fire causing $500 in damage, the insurer is liable to pay for the damage exceeding the deductible amount. The deductible is the amount the insured must pay out of pocket before the insurance coverage kicks in.
In this particular case, the damage amounts to $500, and after subtracting the deductible of $300, the insurer will pay the remaining $200. Therefore, the correct answer to how much will the insurer pay is $200.