A Provision in an Insurance Policy in Which an Initial

question 36

Multiple Choice

A provision in an insurance policy in which an initial amount of loss is not covered by the policy and must be paid by the insured is known as a:

• A)security deposit.
• B)market imperfection.
• C)policy limit.
• D)deductible.
• E)loss premium.

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Definitions:

Negotiates

The process of discussing something formally in order to reach an agreement, usually in the context of contracts, salaries, or prices.

Parol Evidence

A legal rule that prevents parties to a written contract from presenting extrinsic evidence of terms of the agreement that contradict, modify, or vary the written terms.

Code

A set of rules or principles designed to regulate conduct or provide guidelines for behavior.

Indorsement

A signature, usually on the back of a check or other negotiable instrument, that transfers the rights of the document to another party or specifies conditions for its use.