One of the reasons that deductible are used in insurance policies is to
A)eliminate coverage for small claims.
B)place restrictions or limits on the insurer's promise to perform.
C)provide broader coverage by increasing the number of perils covered.
D)exclude perils that are not insurable.

Question

Quizplus · Accepted Answer

Deductibles are used in insurance policies primarily to eliminate coverage for small claims. This helps in reducing the number of minor claims that an insurer has to process and pay out, thereby reducing administrative costs and helping to keep premiums lower for policyholders.

One of the Reasons That Deductible Are Used in Insurance