Confused about the answer to Unit 5 quiz question

Confused about the answer to Unit 5 quiz question

by Deleted user -
Number of replies: 7

Hello Everyone,

Can you guys help me understand why the answer to this question is C: $400?

I'm confused. Need an explanation, pleeeez.

Under the Garagekeepers coverage, Section III of the Garage policy, the insured suffers a single vandalism loss to nine (9) vehicles belonging to customers. Damage is $100 per vehicle. How much will the policy pay?

Choose one answer.
a. $900
b. $500
c. $400
d. Nothing

In reply to Deleted user

Re: Confused about the answer to Unit 5 quiz question

by Marie Tan -
I had this question. It was answered earlier in the thread. Here is the link to that discussion. http://www.oltraining.com/moodle2/mod/forum/discuss.php?d=10865
In reply to Marie Tan

Re: Confused about the answer to Unit 5 quiz question

by Deleted user -
Hi Marie, Thank you so much for responding. I saw the answer and it still does not make sense. I am trying to understand the logic behind it. Jan said the in her answer that the answer is $500. Am I getting this correct? So, if there are 9 cars in the garage x $100 per car=$900 With $500 deductible equals $400 Is this this how we get to this answer? :) Please explain if you have a moment. Thank you again Sincerely, Joana
In reply to Deleted user

Re: Confused about the answer to Unit 5 quiz question

by Marianela Aybar -
Yes, it's because of the deductible. The deductible is $100 per vehicle up to $500 so the only thing the policy will pay is the difference, which is $400.
In reply to Marianela Aybar

Re: Confused about the answer to Unit 5 quiz question

by Deleted user -
Thank you so much. Your explanation makes a lot of sense.
In reply to Deleted user

Re: Confused about the answer to Unit 5 quiz question

by Jan Bradburn- -

Hi Joana,

I think you misunderstood my response.  I stated that the insurer will pay $400 and the insured will pay $500 (the deductible).  The correct answer is $400 because the question is asking the amount paid by the policy - the insurer.

Jan  

In reply to Jan Bradburn-

Re: Confused about the answer to Unit 5 quiz question

by Deleted user -
Thank You, Jan! Now I get it :)))) this insurance business is all new to me. I haven't even worked in it one day yet.
In reply to Deleted user

Re: Confused about the answer to Unit 5 quiz question

by Jan Bradburn- -

Joana,

I know exactly how you feel!  I was in the same place you are about 20 years ago and it was the best decision I ever made.  I wish you the best of luck in your new pursuit.

Jan