Question

What is the purpose of a deductible in insurance policies?

a.

To make insurance policies more expensive

b.

To ensure the insured does not receive any claims

c.

To share the cost of claims between the insurer and the insured

d.

To eliminate the need for documentation in the claims process

Posted under IC38 Life Insurance Agent Exam

Answer: (c).To share the cost of claims between the insurer and the insured Explanation:Deductibles are a cost-sharing provision in insurance that requires the insured to bear a portion of the claim costs, ensuring that both the insurer and the insured share the financial burden.

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