Rahim's decision to increase the amount of the deductible on his business liability insurance policy will result in the business having to absorb the loss resulting from a future materialization of a legal risk.

Question

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Increasing the deductible on an insurance policy means that the policyholder (in this case, Rahim's business) will be responsible for paying a larger portion of any loss before insurance coverage begins, thus absorbing more of the loss from a legal risk.

Rahim's Decision to Increase the Amount of the Deductible on His