Can someone please answer this multiple choice question?

[Zaara sheikh]

Dennis submits a motor claim for US$500 but only receives US$450 as a settlement. The insurer is most likely to have deducted a(n):
(a) Deductible
(b) Excess
(c) Discount
(d) Average?

 

[Chazm]

If you don’t know the answer to this easy one, it’s time to study more.

 

[DHK]

The license exam provider has an 800# and/or email address to help you answer your questions and help you with your studies.

 

[adjusterjack]

Is that a real question on a real test? If it is I wonder what country the writer came from.

Americans don't refer to a car as a motor. The British do. Even if we substituted car for motor in that question, it still wouldn't make sense because we'd have to know what kind of claim and to whom it was submitted. We also don't put the letters US in front of money because we are in the US and it's understood by 300,000,000+ Americans that we are talking about US dollars and not some foreign currency.

And I can't imagine that the answer could be deductible because there hasn't been a $50 deductible on US auto insurance policies since probably the 1940s.

 

[Markthebroker]

Somebody better answer quick, he's sitting taking the test right now.

 

[Cornelius]

Could "deducted" be a clue?

 

[Zaara sheikh]

So is it deductible?

 

[LostDollar]

If you don’t know the answer to this easy one, it’s time to study more.

Caveat, I'm not an insurance agent.

I used to have a State Farm policy on my 1995 pickup with $50 deductible collision and comprehensive. I wonder if I could get the right answer to the question?

 

[adjusterjack]

So is it deductible?

Did you not comprehend the additional information needed for the answer to that question?

What kind of claim and to whom was it submitted?

I don't like making assumptions.

How did you answer the question?

 

[Markthebroker]

He's been sitting in the testing office for a long time. Someone is going to need to tell him the answer.