Texas Adjuster Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer addresses the standard practice in insurance regarding deductibles in multiple loss scenarios. When multiple losses occur under a single policy, each loss typically has its own deductible that applies separately. This means that for each claim filed as a result of different incidents, the insured must meet the deductible amount specified in their policy for each individual loss.

This approach ensures that the insurer’s exposure is managed effectively, as the insured shares in the costs of each loss before the insurer begins to cover additional expenses. It reflects the principle of insurance where deductibles help control moral hazard and keep insurance premiums viable. Each claim is treated independently, maintaining the contractual obligations stipulated in the policy.

In contrast, other approaches, such as applying only the highest deductible or waiving deductibles altogether, do not align with common insurance practices and could lead to increased risk and potential financial strain on the insurance provider. Additionally, shared claim limits could complicate the payout process and disrupt the equitable handling of individual losses.