The _____ clause in an insurance policy relieves the insurer of responsibility to pay for policyholder's losses below a pre-specified amount.
A)propitious selection
B)coinsurance
C)vigilance
D)deductible

Question

Quizplus · Accepted Answer

The deductible clause in an insurance policy states the amount of loss that is not covered by the insurance company and has to be borne by the policyholder. This clause is designed to discourage policyholders from making small or frivolous claims and to reduce the insurer's administrative expenses.

The _____ Clause in an Insurance Policy Relieves the Insurer