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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of a deductible in insurance policies?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is pure premium?

View solution

Q. Which rating factors are used to ensure that insurance rates are not unfairly discriminatory?

View solution

Q. Why is it necessary to include a margin for profit in the insurance premium?

View solution

Q. What components make up the final rate of premium in insurance?

View solution

Q. What does "Burning Cost" refer to in the context of insurance premium?

View solution

Q. How is the "pure premium" calculated?

View solution

Q. What is the "pure premium" in insurance ratemaking?

View solution

Q. Identify the two factors that affect insurance ratemaking.

View solution

Q. What does the 'law of large numbers' principle help insurance companies achieve?

View solution

Q. How does the 'law of large numbers' relate to the predictability of results in insurance?

View solution

Q. What does the 'law of large numbers' principle mean for insurance companies?

View solution

Q. How can an insurance company ensure that the pool is sufficient to compensate for incurred losses?

View solution

Q. What is the principle referred to as 'the law of large numbers' in insurance?

View solution

Q. How are rates and premiums related in insurance?

View solution

Q. What is the main purpose of ratemaking in insurance?

View solution

Q. What should the insurer plan for when introducing a product into the market?

View solution

Q. What does the regulator ask the insurer to commit to when filing an insurance product?

View solution

Q. Why does every insurance product need to be filed with IRDAI for approval before being offered for sale?

View solution

Q. How are the objectives of underwriting achieved?

View solution

Q. What is the purpose of underwriting when it comes to classifying risks?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...