Ch. 6 Text Questions - 1 What is a deductible How does a...

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1. What is a deductible? How does a deductible affect insurance? a. A deductible is the amount of money a person will pay before the insurance will pay on an insured loss. A deductible can affect insurance by making you pay before the insurance will pay for the loss. Also, typically, an insurance’s deductible and premium are inversely related. 2. What is risk classification? a. Risk classification is the assessment and categorization of the characteristics of a person’s loss. For example, a person who lives in Minnesota will have a different risk classification for blizzards than Florida. 3. What are riders? How do they affect insurance? a. Riders are supplemental insurance for things that are not normally covered by insurance. These riders may have higher rates, but they are very useful if you want to extend coverage or cover something not normally covered. 4. What are five elements commonly found in contracts?
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  • Fall '16
  • Mrs. Zombraz
  • homeowners insurance, deductible affect insurance

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