One of the purposes that deductible are used in insurance policies is to O eliminate coverage for small claims. O place restrictions or limits on the insurer's promise to perform. O provide broader coverage by increasing the number of perils covered. O exclude perils that are not insurable.

One of the purposes that deductible are used in insurance policies is to O eliminate coverage for small claims. O place restrictions or limits on the insurer's promise to perform. O provide broader coverage by increasing the number of perils covered. O exclude perils that are not insurable.

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter10: Managing Property And Liability Risk

Section10.2: Understanding How Insurance Works

Problem 4CC

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

Question

One of the purposes that deductible are used in insurance policies is to
O eliminate coverage for small claims.
O place restrictions or limits on the insurer's promise to perform.
provide broader coverage by increasing the number of perils covered.
exclude perils that are not insurable.

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