The purpose of other-insurance provisions is to
A) eliminate the need for deductibles.
B) penalize those insureds who carry inadequate amounts of insurance.
C) specify who will pay losses if the insurer is bankrupt.
D) preserve the principle of indemnity.
Question 2
Connie has an individual medical expense policy with a 1,000 deductible. She is required to pay 20 percent of covered expenses in excess of the deductible. The insurer will pay 80 percent of expenses in excess of the deductible.
If Connie has eligible medical expenses of 26,000, how much will be paid by her insurer?
A) 10,000
B) 11,000
C) 20,000
D) 21,000
Sample of an insurance card.
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