Which of the following statements about the use of deductibles is (are)true?
I.They represent risk retention by insurance purchasers.
II.They tend to increase the cost of adjusting small claims.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Deductibles represent risk retention because the insured is responsible for losses up to the deductible amount. They do not increase the cost of adjusting small claims; rather, they reduce the number of small claims filed.

Which of the Following Statements About the Use of Deductibles