n NISM Certifications
NSM General NISM
Medium

Why do insurers charge lower premiums for higher voluntary deductibles?

Practice question from IC 38 Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. It reduces the insurer’s risk

    Correct answer

  2. B

    It increases the insurer’s risk

  3. C

    It increases the insured’s risk

  4. D

    It reduces the insured’s risk

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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