An increase in the amount of the deductible will:
A)increase the insurance coverage.
B)decrease the replacement cost of the insured property.
C)decrease the amount of insurance premiums.
D)increase the personal property floater coverage for the insured property.
E)decrease the value of the property.

Question

Quizplus · Accepted Answer

Increasing the deductible—the amount paid out of pocket before insurance covers the rest—typically decreases the amount of insurance premiums because it reduces the insurer's potential payout.

An Increase in the Amount of the Deductible Will