MTA New Member Practice Exam

The deductible amount for insurance is the portion of a claim that must be paid out of pocket by the insured before the insurance covers the remaining costs. In the context of this question, the correct choice indicates that for the fiscal year 2022-2023, the deductible is set at $25,000.00. This amount is significant as it reflects the financial responsibility of the insured individual or organization before insurance benefits kick in.

Choosing $25,000.00 as the deductible likely aligns with certain policy types or coverage levels that require a substantial contribution towards claims. High deductibles can often lead to lower premium payments, which can be beneficial in terms of budgeting for insurance costs each year. This balance between premium and deductible is a critical consideration when selecting an insurance policy.

Other choices present different deductible amounts, but $25,000.00 represents the required amount for this specific fiscal year. Knowing this helps stakeholders understand their potential out-of-pocket expenses should they need to file a claim against their insurance policy.