From the insured's perspective,the use of deductibles in insurance contracts is an example of
A)risk transfer.
B)loss control.
C)risk avoidance.
D)risk retention.

Question

Quizplus · Accepted Answer

The use of deductibles is an example of risk retention, as the insured agrees to bear a portion of the financial risk by paying a certain amount out of pocket before the insurance coverage kicks in. This can also act as an incentive for the insured to take necessary steps to minimize losses and practice loss control.

From the Insured's Perspective,the Use of Deductibles in Insurance Contracts