If You Have a $300 Deductible on the Collision Coverage

question 51

Multiple Choice

If you have a $300 deductible on the collision coverage part of your auto policy, you pay the total amount of any loss that does not exceed $300.However, if you have a loss of $1,000, the insurer pays the entire amount, $1,000.Identify this type of deductible.

• A)Vanishing deductible
• B)Franchise deductible
• C)Waived deductible
• D)Straight deductible
• E)Disappearing deductible

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Put Option

An agreement in finance that allows the owner to sell a certain quantity of a basic asset at an agreed-upon price before a certain deadline, without being required to do so.

Financial Risk Exposure

represents the potential for financial loss that a company faces due to its financial decisions and market conditions, including changes in interest rates, currency exchange rates, and credit risks.

Citrus Grower

A citrus grower is an individual or company engaged in the cultivation and production of citrus fruits, such as oranges, lemons, limes, and grapefruits.