Deductible — Social Studies definition
A stated portion borne by the insured before the modeled coverage payment.
Where it is taught
- Taxes, Withholding, Insurance & Risk Sharing — Household Finance & Major Decisions, Government, Civic Participation & Economics, Grade 12
Questions using deductible
Problem 1
A fully covered invented $900 loss has a $150 deductible and no other limits or sharing. Premium is separately $80. Calculate claim payment and the insured’s stated costs.
Answer and explanation
The insurer pays $750. The insured bears $150 of the loss plus the separate $80 premium, totaling $230 under the supplied scenario. Coverage assumptions and exclusions are essential; this is not every real contract.
Response criteria
- Explain the relevant institution or economic concept accurately; show correct calculations where needed.
- Connect supplied evidence and stated assumptions to an explained conclusion.
- Compare feasible options and their effects on different people without stereotypes.
- Identify a limitation, tradeoff, uncertainty, or condition that qualifies the conclusion.