ABC Insurance retains the first $1 million of each property damage loss and purchases reinsurance for that part of any property loss that exceeds $1 million.The insurance for property losses above $1 million is called
A)excess insurance.
B)liability insurance.
C)coinsurance.
D)primary insurance.

Question

Quizplus · Accepted Answer

Excess insurance is purchased to cover losses above a certain limit or deductible. In this case, ABC Insurance retains the first $1 million of each property damage loss and purchases excess insurance for any losses that exceed this amount.

ABC Insurance Retains the First $1 Million of Each Property