Exam P Practice Question 961
Study guide: Exam P-1
A policy has an ordinary deductible of 500, a coinsurance percentage of 80%, and a maximum payment by the insurer of 5,000.
Calculate the smallest ground-up loss for which the insurer pays the maximum amount.
- A)
5{,}500 - B)
6{,}250 - C)
6{,}750 - D)
7{,}000 - E)
7{,}250
Answer this question and see the worked solution
Concepts tested
- Coinsurance Percentage
- Deductible
- Benefit Limit
- Payment Random Variable
- Policy Information
- Loss Random Variable