Hank has a $2,000 deductible collision coverage on his truck. What amount will he be indemnified after his truck rolls over?

Prepare for the Florida Certified Insurance Representative Exam. Use multiple choice questions and detailed explanations to enhance your study sessions. Improve your chances of success!

To determine the indemnification amount for Hank after his truck rolls over, you need to consider the concept of deductibles in an insurance policy. A deductible is the amount that the insured must pay out of pocket before the insurance coverage kicks in.

In this scenario, if the total damage to Hank's truck amounts to $25,000 and he has a deductible of $2,000, the insurance will cover the amount over and above the deductible. This means:

  1. Start with the total loss amount of $25,000.
  2. Subtract the deductible of $2,000.

By applying this calculation:

$25,000 (total loss) - $2,000 (deductible) = $23,000.

Thus, after Hank pays the deductible, he will be indemnified $23,000 for the collision loss. This aligns precisely with the correct choice.

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