Question

What happens when a claim exceeds the franchise limit?

a.

The insured pays the entire claim.

b.

The insurer pays the entire claim.

c.

Both the insured and the insurer share the claim payment.

d.

The claim is not processed.

Posted under IC38 Life Insurance Agent Exam

Answer: (b).The insurer pays the entire claim. Explanation:When a claim exceeds the franchise limit, the entire claim is admissible, and the insurer pays the full amount of the loss.

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Q. What happens when a claim exceeds the franchise limit?
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