How Does a Deductible Affect the Amount an Insurance Company

question 1

Multiple Choice

How does a deductible affect the amount an insurance company must pay?

• A)not at all; the deductible is a matter between two insureds
• B)the insurance company pays the loss less the deductible
• C)the amount of the deductible is added to the loss amount
• D)the deductible is added to the annual cost of premiums