If Ariana's policy includes an $800 deductible, how much will the insurance exclude from coverage based on a total bill of $3,800?

Prepare for the UCF FIN2100 Midterm 2 Exam. Study flashcards and multiple choice questions with hints and explanations for better understanding. Equip yourself for success!

In this scenario, the deductible is a specific amount that must be paid out-of-pocket by the insured before any insurance coverage kicks in for a claim. Since Ariana's policy has an $800 deductible, this means that for any claim, she will need to cover the first $800 of her expenses before the insurance provider will start paying.

To find out how much will be excluded from coverage based on her total bill of $3,800, we look at the deductible amount. The insurance will exclude this $800 from coverage because it is the part that Ariana is responsible for paying. Thus, the insurance company is only responsible for the amount that exceeds the deductible after it has been met.

In this case, since the total bill is $3,800 and the deductible is $800, the insurance excludes the deductible amount, which confirms that $800 is indeed the answer. The remaining amount of the bill, which would be covered by insurance, is $3,800 - $800 = $3,000.

Therefore, the total amount excluded from coverage as a result of the deductible is correctly identified as $800.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy