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
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 8QTD
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![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 A policy with a deductible will lower 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 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 deductible 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb14e7b5c-b6ef-44cf-9b15-edf7ae98e8c4%2Fe5ae86d5-0d10-46ba-b5fc-437b0164fadd%2Fefzuoq_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 A policy with a deductible will lower 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 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 deductible 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
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