Which of the following statements about an excess insurance plan is true?
A)The insurer does not participate in a loss until the loss exceeds the amount the firm has decided to retain.
B)The insurer pays first up to some specified level;the insured then pays all losses exceeding the insurer's retention level.
C)Losses in excess of a specified amount are not covered.
D)The insured and insurer share equally in any loss that occurs.

Question

Quizplus · Accepted Answer

An excess insurance plan involves the insurer starting to pay only after losses exceed a certain amount that the insured has decided to retain or cover themselves. This means the insurer does not participate in a loss until it surpasses the retention level set by the firm.

Which of the Following Statements About an Excess Insurance Plan