Which of the Following Is Not a Reason for Using

question 37

Multiple Choice

Which of the following is not a reason for using deductibles in property insurance?

• A)they reduce the morale hazard
• B)they eliminate payment for frequent small losses
• C)they allow consumers to customize contracts based on financial considerations
• D)to split large losses in excess of the policy limits equitably between the insured and the insurer

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Definitions:

Over-Simplification

The process of reducing complex data or information into too simple a form, often missing critical details or nuances.

Masks Reality

Hides or disguises true nature, conditions, or situations, often making something appear different from what it really is.

Evaluative Role

The function of assessing or judging the value, quality, or importance of something based on established criteria.

Analysis

Identifies the intended and actual inferential relationships among statements, questions, concepts, descriptions, or other forms of representation intended to express belief, judgment, experiences, reasons, information, or opinions.