Which One of the Following Explains the Effect of a Co-Insurance

question 112

Multiple Choice

Which one of the following explains the effect of a co-insurance clause?

• A)A co-insurance clause provides for the insurance claim to be split between two or more beneficiaries.
• B)A co-insurance clause provides for several different properties to be insured under the same policy.
• C)A co-insurance clause provides for the insurance company to only pay a percentage of any loss.
• D)A co-insurance clause provides for more than one person to pay the premium.
• E)A co-insurance clause provides for the insurance company to arrange its own insurance on a large policy.

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Definitions:

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.

Total Utility

The overall satisfaction or value a consumer receives from consuming a given quantity of goods or services.

Negative Marginal Utility

The decrease in satisfaction or usefulness obtained from consuming one more unit of a product, leading to decreased overall utility.