What is the deductible amount per occurrence in the described comprehensive general liability policy?

What is the deductible amount per occurrence in the described comprehensive general liability policy?

• A. $100
• B. $250
• C. $500
• D. $1,000

Answer: (C)

The deductible per occurrence is the amount you must pay out of pocket for each separate incident that leads to a claim, before the insurance coverage kicks in. In the described policy, that amount is $500. So for any single incident, you would pay the first $500, and the insurer would cover the rest up to the policy limits (assuming there are no other limits or exclusions triggered). If two distinct incidents occur, you’d apply the $500 deductible to each one. This deductible level also influences the premium: higher deductibles usually mean lower premiums, while lower deductibles raise the premium. The other dollar amounts would imply different out-of-pocket costs per claim and would not match the policy as described.

The deductible per occurrence is the amount you must pay out of pocket for each separate incident that leads to a claim, before the insurance coverage kicks in. In the described policy, that amount is $500. So for any single incident, you would pay the first $500, and the insurer would cover the rest up to the policy limits (assuming there are no other limits or exclusions triggered).

If two distinct incidents occur, you’d apply the $500 deductible to each one. This deductible level also influences the premium: higher deductibles usually mean lower premiums, while lower deductibles raise the premium. The other dollar amounts would imply different out-of-pocket costs per claim and would not match the policy as described.