Which of the Following Insurance Provisions Requires an Insured to Pay

question 30

Multiple Choice

Which of the following insurance provisions requires an insured to pay a percentage of the cost of an insured loss?

• A) an endorsement
• B) a rider
• C) a deductible clause
• D) a coinsurance clause
• E) an indemnity clause

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Definitions:

Risk Aversion

The preference for lower risk options over higher risk ones, even if the latter could result in higher returns.

Security Market Line

A representation in finance that shows the expected return of investments at different levels of risk, based on the capital asset pricing model (CAPM).

Beta

A gauge of the variability of a stock's value relative to the comprehensive market.

Market Average

A statistical measure that represents the overall market or a specific segment of it, commonly used to track market performance.