Risk Managers Are Concerned with Policy Limits and Deductible Size

question 21

Multiple Choice

Risk managers are concerned with policy limits and deductible size contained in insurance contracts because:

• A) an increased deductible amount increases the policy's premium
• B) the policy limit and the deductible are the only determinants of whether the policy will pay the claim
• C) they determine how much of the exposure the insured retains and transfers
• D) premiums set by policy limit and deductible are not tax deductible whereas uninsured losses are deductible

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Definitions:

Insurance Company

A business entity that provides coverage, compensating insured individuals for specified losses in exchange for premiums paid.

Abnormal Behavior

Actions or behaviors that deviate significantly from what is considered typical or normal among a given population or society.

Excessive Texting

A behavioral pattern characterized by sending an unusually high number of text messages, potentially interfering with daily activities or relationships.

Capable of Helping

Having the ability, resources, or skills necessary to provide assistance or support to others.