Which of the Following Is a Deductible Whose Amount Decreases

question 40

Multiple Choice

Which of the following is a deductible whose amount decreases as the amount of the loss increases?

• A)Demutualized deductible
• B)Waived deductible
• C)Disappearing deductible
• D)Straight deductible
• E)Franchise deductible

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Definitions:

Undisputed Debt

The amount of money owed that is not contested or challenged by the debtor, accepted as due and payable.

Statute of Limitations

The law prescribing the time limit within which legal action must be brought for certain kinds of claims or rights to be enforced.

Illusory Promise

A statement that appears to be a promise but does not actually commit the promisor to any action, lacking enforceable obligations.

Charitable Subscription

A pledge or donation made to a charitable organization or cause.