Question

An Insured has a $500 deductible with a 20% coinsurance provision. If the Insured has a $10,000 accident claim, the Insured will be responsible for how much of the claim

Answer 1

Answer: $2,400

Step-by-step explanation:

The insured will pay the $500 deductible so that reduces the amount to $9,500.

The Insured has a 20% coinsurance provision so will pay 20% of what is left;

= 9,500 * 20%

= $1,900

Total Insured will pay = 500 + 1,900

= $2,400