Which of the following statements about a calendar-year deductible is (are)true?
I.It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.
II.It is used only in policies which cover direct property losses.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

I is incorrect because a calendar-year deductible requires the insured to pay a specified amount out-of-pocket each calendar year before the insurance coverage pays for any claims, not for each claim. II is incorrect because calendar-year deductibles are not exclusive to policies covering direct property losses; they are also used in health insurance and other types of policies.

Which of the Following Statements About a Calendar-Year Deductible Is