Multiple choice

Which of the following is/are the reason for the increase in use of large deductible policies?

  1. Reduced residual market burdens

  2. Insurance cost savings

  3. Cash flow advantages

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The use of large deductible policies has increased dramatically during the last 5 to 10 years for the following reasons:

  1. Insurance cost savings;
  2. Loss control incentives;
  3. Reduced residual market burdens; and
  4. Cash flow advantages.