Which of the Following Statements About an Excess Insurance Plan

question 31

Multiple Choice

Which of the following statements about an excess insurance plan is true?

• A)The insurer does not participate in a loss until the loss exceeds the amount the firm has decided to retain.
• B)The insurer pays first up to some specified level;the insured then pays all losses exceeding the insurer's retention level.
• C)Losses in excess of a specified amount are not covered.
• D)The insured and insurer share equally in any loss that occurs.

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Definitions:

Personally Distressing

A term that describes a personal experience or condition that causes emotional pain or discomfort.

Dysfunctional

Pertaining to the impaired or abnormal functioning of a system, organ, or mechanism in a living organism or organization.

Schizophrenia

A mental disorder characterized by distorted thinking, perception, emotions, language, sense of self, and behavior.

Neurotransmitter

Substances in the nervous system that facilitate signal transmission from one nerve cell to another across synaptic gaps.