Question

mark asks his financial advisor to explain what a deductible is and why it is included in his insurance contract. which of the following statements is false? deductibles encourage policy holders to be more careful with their property. deductibles discourage frivolous claims. deductibles keep insurance costs down by increasing the number of small claims. the deductible is the fixed amount of a claim that the insured must pay from his pocket.

Answer 1

A deductible is the maximum amount that the policyholder must pay out-of-pocket before the insurance company pays the rest of the bill. It is included in insurance contracts to encourage policyholders to be more careful with their property and discourage frivolous claims. Deductibles also keep insurance costs down by increasing the number of small claims that policyholders are responsible for.

Step-by-step explanation:

A deductible is the maximum amount that the policyholder must pay out-of-pocket before the insurance company pays the rest of the bill. It is included in insurance contracts to encourage policyholders to be more careful with their property and discourage frivolous claims. Deductibles also keep insurance costs down by increasing the number of small claims that policyholders are responsible for.