Which of the following is not a reason for using deductibles in property insurance? A) They reduce the morale hazard B) They eliminate payment for frequent small losses C) They allow consumers to customize contracts based on financial considerations D) To split large losses in excess of the policy limits equitably between the insured and the insurer

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Deductibles are used to eliminate payment for frequent small losses, reduce the morale hazard, and allow consumers to customize contracts based on financial considerations. They are not used to split large losses in excess of the policy limits equitably between the insured and the insurer. Instead, this is done through reinsurance or other forms of risk sharing.

Which of the Following Is not a Reason for Using