From the Insured's Perspective,the Use of Deductibles in Insurance Contracts

question 24

Multiple Choice

From the insured's perspective,the use of deductibles in insurance contracts is an example of

• A)risk transfer.
• B)risk control.
• C)risk avoidance.
• D)risk retention.

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Definitions:

Materially Different Meanings

Terms or phrases that have significantly divergent implications in different contexts or interpretations.

Interpretation

The process of explaining, defining, or clarifying the meaning of words, texts, or actions.

Bilateral Mistake

A misunderstanding where both parties involved in a contract have an incorrect belief about a basic assumption on which the contract is based.

Mistake Of Value

An error made by one or both parties at the time of entering into a contract, regarding the value or worth of the subject matter of the contract.