North Carolina Adjuster Practice Exam

To find the amount Frank should expect to receive from the insurance company after the hailstorm damage, it's important to first calculate his deductible based on the total insured value of his home.

The home is valued at $700,000, and Frank has a 4% deductible. To calculate the deductible amount, you multiply the home's value by the deductible percentage.

So, the calculation would be as follows:

$700,000 * 0.04 (which represents 4%) = $28,000.

This amount, $28,000, represents the portion of the claim that Frank is responsible for paying out of pocket before the insurance coverage kicks in.

Now, to find out how much Frank can expect to receive from the insurance company, you subtract this deductible from the total damage amount. Assuming the total damage equals the total insured value, which is common in such scenarios, the insurance payout would be calculated as:

$700,000 (total damage) - $28,000 (deductible) = $672,000.

However, the focus of the question is solely on determining the deductible amount, which is why the correct answer is indeed $28,000. This means Frank should expect to cover this amount himself before