In what way does a deductible help an insurance company? It adds to the company’s pool of funds. It increases

Question

In what way does a deductible help an insurance company?

It adds to the company’s pool of funds.
It increases consumers' insurance premiums.
It lowers the payout the company has to make.
It reduces consumers' co-payments.

GPT-5 mini · Answer

Correct answer: It lowers the payout the company has to make.

Explanation: A deductible is the amount the insured must pay before the insurer pays. By requiring policyholders to cover small losses themselves, deductibles reduce the insurer's claim payouts and discourage frequent, minor claims.

In what way does a deductible help an insurance company?

It adds to the company’s pool of funds.
It increases consumers' insurance premiums.
It lowers the payout the company has to make.
It reduces consumers' co-payments.

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In what way does a deductible help an insurance company? It adds to the company’s pool of funds. It increases consumers' insurance premiums. It lowers the payout the company has to make. It reduces consumers' co-payments.

All Answers 1

Submit Your Answer

In what way does a deductible help an insurance company?

It adds to the company’s pool of funds.
It increases consumers' insurance premiums.
It lowers the payout the company has to make.
It reduces consumers' co-payments.