Veda Owned a Diamond Necklace

True/False

Veda owned a diamond necklace.She entered into an insurance contract for coverage of the necklace.Under the terms of that contract, she was required to pay $500 per month.After Veda paid the premium for two months, the necklace was stolen.Her insurance policy covers loss by theft and the insurance company admits that it must pay a benefit to her.That policy, however, contains a "deductible." This means that the benefit that Veda is entitled to receive from the insurance company will be reduced by the amount that she actually paid as premiums: $1000.