Risk Managers Are Concerned with Policy Limits and Deductible Size

Multiple Choice

Risk managers are concerned with policy limits and deductible size contained in insurance contracts because:

A) an increased deductible amount increases the policy's premium
B) the policy limit and the deductible are the only determinants of whether the policy will pay the claim
C) they determine how much of the exposure the insured retains and transfers
D) premiums set by policy limit and deductible are not tax deductible whereas uninsured losses are deductible