A deductible should only be accepted if
A) the firm can afford the associated losses,
B) the firm will experience sufficient savings,
C) the firm is already in a self-insurance program,
D) both a. and b. are correct.

Question

Quizplus · Accepted Answer

A deductible should be accepted if the firm can afford the associated losses and will experience sufficient savings from lower insurance premiums or other cost reductions. Being in a self-insurance program is not a prerequisite for accepting a deductible.

A Deductible Should Only Be Accepted If