From the perspective of a policyholder, is a deductible in insurance policy acceptable? Why or why...

From the perspective of a policyholder, is a deductible in insurance policy acceptable? Why or why not?

Expert Solution

Rahul Sunny answered 2 years ago

From a policyholder perspective, the use of deductibles in insurance contracts is Risk avoidance. b. Risk...

From a policyholder perspective, the use of deductibles in insurance contracts is Risk avoidance. b. Risk retention. c. Risk control. d. Risk transfer.

An insurance company has 10,000 automobile policy holders. The expected yearly claim per policyholder is $240,...

An insurance company has 10,000 automobile policy holders. The expected yearly claim per policyholder is $240, with a standard deviation of $800. Approximate the probability that the total yearly claims: a) exceeds $2 million b) is less than $1.5 million

life insurance policyholder may borrow the cash value from their life insurance policies. where are life...

life insurance policyholder may borrow the cash value from their life insurance policies. where are life insurance policy loans shown on life insurance company's financial statements ? A) as an asset. B) as income. C) as an expense. D) as a liability.

Why life insurance doesn’t have deductible while health insurance have?

Georgio has a health insurance policy that includes a deductible of $400 and a coinsurance of 20%.

Georgio has a health insurance policy that includes a deductible of $400 and a coinsurance of 20%. If her total is $6000, how much will her insurance pay?

Suzanne has no deductible on her health insurance policy she will tend to engage in a...

Suzanne has no deductible on her health insurance policy she will tend to engage in a lifestyle that is less healthy than a person with $1,200 insurance deductible this is said to be a problem of

An insurance policy has an ordinary deductible of 100 and a maximum covered loss of 10,000....

An insurance policy has an ordinary deductible of 100 and a maximum covered loss of 10,000. You observe the following six payments: 100 200 500 600 1000 5000 In addition, there are three payments at the limit. You ﬁt a single parameter Pareto distribution with θ = 50 to the ground up distribution using maximum likelihood. Determine the estimated parameterα.

Suppose you have purchased Home Owners Insurance. This insurance policy has a $5,000 deductible, so that...

Suppose you have purchased Home Owners Insurance. This insurance policy has a $5,000 deductible, so that if you have a claim and the damage is less than $5,000 you pay for it out of pocket. However, if the damage is greater than $5,000, you pay the first $5,000 and the insurance pays the rest. In the current year, there is a probability of 0.085 that you will have a claim. If you have a claim for damages on your home,...

With a certain medical insurance policy, the customer must first pay an annual $100 deductible, and...

With a certain medical insurance policy, the customer must first pay an annual $100 deductible, and then the policy covers 60% of the cost of dental work. The first dental insurance claims for a specific year submitted by a person are for two procedures. The first procedure cost $700, and the second procedure cost $990. How much, in total, will he need to pay for these procedures?

With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and...

With a certain medical insurance policy, the customer must first pay an annual $350 deductible, and then the policy covers 80% of the cost of x-rays. The first insurance claims for a specific year submitted by a person are for two x -rays. The first x-ray cost $680 and the second x-ray cost $930. How much, in total, will he need to pay for these x-rays?

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