3
QuizMultiple Choice

Insurance Decisions and Risk Management — Quiz

Question 3 • Personal Finance

What is a deductible?

Answer
A
total coverage
B
claim amount
C
amount paid before coverage
D
monthly payment

Explanation

A deductible is the amount you must pay out of pocket for a covered loss before your insurance coverage begins paying. It is not the full claim amount or the monthly premium. Therefore, the correct choice is “amount paid before coverage.”

AI-written and checked against the verified answer.

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