Question

All of the following are eligible Physical damage deductibles for private passenger autos with the Florida Auto Joint Underwriting Association, EXCEPT:

Select one:
a. $250
b. $100
c. $500
d. $1,000

Answer 1

The $100 deductible is not an eligible option for physical damage deductibles with the Florida Auto Joint Underwriting Association. The FAJUA typically offers higher deductibles, and insurance companies collect premiums to cover the overall costs of accidents. Therefore correct option is B

Step-by-step explanation:

The student asked which of the following is not an eligible physical damage deductible for private passenger autos with the Florida Auto Joint Underwriting Association. The options given were $250, $100, $500, and $1,000. Among these, the $100 deductible is not an eligible deductible for physical damage as per the Florida Auto Joint Underwriting Association's guidelines. Typically, the FAJUA offers higher deductibles to align with the pooled risk they cover.

Deductibles are the portion of a claim that the policyholder must pay out of pocket before the insurance company pays the rest. In the example provided, if each of the 100 drivers pays a $1,860 premium each year, the insurance company will collect the $186,000 that is needed to cover the costs of the accidents that occur.