From the insured's perspective,the use of deductibles in insurance contracts is an example of
A)risk transfer.
B)risk control.
C)risk avoidance.
D)risk retention.

Question

Quizplus · Accepted Answer

The use of deductibles in insurance contracts is an example of risk retention, as it means the insured is responsible for paying a portion of the loss out of their own pocket before the insurance coverage kicks in. This helps to reduce the cost of insurance premiums but also means the insured is retaining some amount of risk.

From the Insured's Perspective,the Use of Deductibles in Insurance Contracts