Which of the following is correct about the effect of a deductible with respect to the price of an insurance policy? O A policy with a deductible will raise the premium. This will make the overall cost of insurance higher for policyholders who do not have a claim, but lower for those with high claims O Apolicy with a deductible will lower the premium. This will make the overal cost of insurance higher for policyholders who do not have a claim, but lower for those with high daims O A policy with a deductible will raise the premium. This will make the overall cost of insurance lower for policyholders who do not have a claim but higher for those with high claims O A policy with a deductitle will lower the premium This will make the overal cost of insurance lower for policyholders who do not have a claim but higher for those with high claims

Which of the following is correct about the effect of a deductible with respect to the price of an insurance policy? O A policy with a deductible will raise the premium. This will make the overall cost of insurance higher for policyholders who do not have a claim, but lower for those with high claims O Apolicy with a deductible will lower the premium. This will make the overal cost of insurance higher for policyholders who do not have a claim, but lower for those with high daims O A policy with a deductible will raise the premium. This will make the overall cost of insurance lower for policyholders who do not have a claim but higher for those with high claims O A policy with a deductitle will lower the premium This will make the overal cost of insurance lower for policyholders who do not have a claim but higher for those with high claims

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 8QTD

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5. Some peode have high deductibles on their insurance policies in order to lower their mopthly-rates. Others have lower deductibles, but higher insurance rates. Under whät circumstances wouid one or the other be the better choice? C.
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