State Farm Homeowner Policy FP-7955
Deductible Exam Questions and Correct
Answers (Verified Answers) Plus Rationale
2027 Q&A| Instant Download Pdf
1. What is a homeowners insurance deductible?
A. The maximum amount an insurer will pay for a covered loss
B. The amount added to an insurance premium
C. The amount the policyholder is responsible for paying before
insurance pays a covered claim
D. The amount paid to the mortgage lender
Rationale: A deductible is the portion of a covered loss that the
insured must absorb before the insurer contributes to the remaining
covered amount, subject to the policy's terms, limits, and exclusions.
2. If a covered loss is $8,000 and the applicable deductible is $1,000,
how much would the insurer generally pay, assuming no other
limitations apply?
,A. $1,000
B. $7,000
C. $7,000
D. $8,000
Rationale: The deductible is subtracted from the covered loss. With an
$8,000 covered loss and a $1,000 deductible, the remaining amount is
$7,000.
3. If the covered damage is $750 and the applicable deductible is
$1,000, what is generally payable by the insurer for the property
damage?
A. $250
B. $750
C. $0
D. $1,000
Rationale: When the covered loss is less than the applicable
deductible, the insured generally receives no payment for that
property loss because the loss does not exceed the deductible.
4. Why does a homeowners policy include a deductible?
A. To eliminate all insurance claims
B. To guarantee replacement-cost coverage
,C. To have the insured share in the cost of covered losses
D. To increase the policy's liability limit
Rationale: Deductibles create cost-sharing between the insurer and
insured. They also help distinguish minor losses from larger claims.
5. Which statement best describes a per-occurrence deductible?
A. It applies once during the entire policy period
B. It applies only to liability claims
C. It generally applies to each covered occurrence subject to the policy
terms
D. It applies only when a claim exceeds the dwelling limit
Rationale: A per-occurrence deductible is generally applied to each
separate covered loss or occurrence for which the deductible is
applicable.
6. An insured experiences two separate covered losses during the
policy period. What should the insured determine before
calculating the amount payable?
A. Only the age of the house
B. Only the mortgage balance
C. The applicable deductible and the policy provisions governing each
, loss
D. The amount of the annual premium only
Rationale: Different losses can be subject to different deductible
provisions. The policy must be reviewed to determine which
deductible applies to each occurrence.
7. Which factor is most important when determining the deductible
applicable to a claim?
A. The insured's preferred contractor
B. The property's market value alone
C. The policy provisions and the type and cause of the covered loss
D. The age of the insured
Rationale: The applicable deductible depends on the policy's
provisions and circumstances of the loss. The type or cause of loss can
affect which deductible applies.
8. A deductible is best described as which type of policy provision?
A. A policy exclusion
B. A coverage limit
C. A cost-sharing provision
D. A liability endorsement
Deductible Exam Questions and Correct
Answers (Verified Answers) Plus Rationale
2027 Q&A| Instant Download Pdf
1. What is a homeowners insurance deductible?
A. The maximum amount an insurer will pay for a covered loss
B. The amount added to an insurance premium
C. The amount the policyholder is responsible for paying before
insurance pays a covered claim
D. The amount paid to the mortgage lender
Rationale: A deductible is the portion of a covered loss that the
insured must absorb before the insurer contributes to the remaining
covered amount, subject to the policy's terms, limits, and exclusions.
2. If a covered loss is $8,000 and the applicable deductible is $1,000,
how much would the insurer generally pay, assuming no other
limitations apply?
,A. $1,000
B. $7,000
C. $7,000
D. $8,000
Rationale: The deductible is subtracted from the covered loss. With an
$8,000 covered loss and a $1,000 deductible, the remaining amount is
$7,000.
3. If the covered damage is $750 and the applicable deductible is
$1,000, what is generally payable by the insurer for the property
damage?
A. $250
B. $750
C. $0
D. $1,000
Rationale: When the covered loss is less than the applicable
deductible, the insured generally receives no payment for that
property loss because the loss does not exceed the deductible.
4. Why does a homeowners policy include a deductible?
A. To eliminate all insurance claims
B. To guarantee replacement-cost coverage
,C. To have the insured share in the cost of covered losses
D. To increase the policy's liability limit
Rationale: Deductibles create cost-sharing between the insurer and
insured. They also help distinguish minor losses from larger claims.
5. Which statement best describes a per-occurrence deductible?
A. It applies once during the entire policy period
B. It applies only to liability claims
C. It generally applies to each covered occurrence subject to the policy
terms
D. It applies only when a claim exceeds the dwelling limit
Rationale: A per-occurrence deductible is generally applied to each
separate covered loss or occurrence for which the deductible is
applicable.
6. An insured experiences two separate covered losses during the
policy period. What should the insured determine before
calculating the amount payable?
A. Only the age of the house
B. Only the mortgage balance
C. The applicable deductible and the policy provisions governing each
, loss
D. The amount of the annual premium only
Rationale: Different losses can be subject to different deductible
provisions. The policy must be reviewed to determine which
deductible applies to each occurrence.
7. Which factor is most important when determining the deductible
applicable to a claim?
A. The insured's preferred contractor
B. The property's market value alone
C. The policy provisions and the type and cause of the covered loss
D. The age of the insured
Rationale: The applicable deductible depends on the policy's
provisions and circumstances of the loss. The type or cause of loss can
affect which deductible applies.
8. A deductible is best described as which type of policy provision?
A. A policy exclusion
B. A coverage limit
C. A cost-sharing provision
D. A liability endorsement
