The Use of Coinsurance Clauses and Deductibles Is an Attempt

question 44

Multiple Choice

The use of coinsurance clauses and deductibles is an attempt by insurance companies to deal with the problem of:

• A) non-payment of premiums.
• B) adverse selection.
• C) insufficient government regulation.
• D) moral hazard.

---

Definitions:

Gross Negligence

A lack of care that demonstrates a reckless disregard for the safety or lives of others, significantly beyond ordinary negligence.

Bailment

The temporary placement of control or possession of personal property into someone else's hands, for a specific purpose, with the expectation of its return.

Legal Owner

The individual or entity that holds valid title to property or assets, recognized by law.

Accessories

Items that add to the convenience or performance of the primary product, or in legal terms, individuals who assist in the commission of a crime.