Which of the following statements about an excess insurance plan is true?
A)The insurer does not participate in a loss until it exceeds the amount the firm has decided to retain.
B)The insurer pays first up to some specified level; the insured then pays all losses exceeding the insurer's retention level.
C)Losses in excess of a specified amount are not covered.
D)The insured and insurer share equally in any loss that occurs.

Question

Quizplus · Accepted Answer

An excess insurance plan only comes into play when a loss exceeds a predetermined amount that the insured has decided to retain. The insurer covers the losses above this retention level.

Which of the Following Statements About an Excess Insurance Plan