Homeowners insurance policies usually cover resident relatives of ...

[Kthamas]

Homeowners insurance policies usually cover resident relatives of the named insured who are under age 24 and who are full-time students away from home. Under the homeowners policy, these full-time students are considered
 
  A) first named insureds.
  B) second named insureds.
  C) other insureds.
  D) additional insureds.

Question 2

In determining insurance limits and deductibles, an important concept is that insurance should be used to pay big losses rather than small losses.
 
  The objective is to insure big losses that could cause financial ruin and to exclude small losses that can be budgeted out of current income. This concept is called the
  A) law of large numbers.
  B) efficient loss-cost concept.
  C) large-loss principle.
  D) retention-transfer tradeoff.

[bubulittle310@msn.cn]

Answer to Question 1

Answer: C

Answer to Question 2

Answer: C

[Kthamas]

Thank you

[bubulittle310@msn.cn]

No problemo