Under partial insurance, companies offer products with deductibles.If an individual opts for a deductible, he/she will have to:
A)bear the entire loss incurred and then get it reimbursed form the insurance company.
B)bear the initial part of the losses incurred.
C)pay very high premiums to gain adequate protection.
D)opt for a whole life insurance policy as additional insurance.
E)return fifty percent of the amount received as face value, back to the insurer.

Question

Quizplus · Accepted Answer

Deductibles are a portion of the loss that the insured must pay out of pocket before the insurance company pays the remaining amount. This means the insured bears the initial part of the losses.

Under Partial Insurance, Companies Offer Products with Deductibles