Deductibles are a combination of risk assumption and risk shifting where the insured person pays the first part of the claim (deductible) and the rest of the claim is shifted to the insurance company.

Question

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Deductibles require the insured person to assume some risk by paying the initial amount of the claim, and then the remaining risk is shifted to the insurance company to cover.

Deductibles Are a Combination of Risk Assumption and Risk Shifting