A provision in an insurance policy in which an initial amount of loss is not covered by the policy and must be paid by the insured is known as a:
A)security deposit.
B)market imperfection.
C)policy limit.
D)deductible.
E)loss premium.

Question

Quizplus · Accepted Answer

A deductible is an agreed-upon amount of money that the insured must pay out of their own pocket before the insurance policy kicks in and the insurer begins paying for the loss. This provision is designed to reduce the insurer's risk exposure and keep premiums low for the insured.

A Provision in an Insurance Policy in Which an Initial