Question

question 7
1 point
what is the purpose of a deductible in insurance policies?

• it’s the total amount the insurance company will pay

for a claim

it’s the amount the insurance company charges for
issuing the policy

it’s the maximum amount an insured person can claim
in a year

it’s the amount the insured person pays out of pocket
before the insurance coverage kicks in

Explanation:

A deductible is a cost-sharing mechanism in insurance. The insured must pay this out-of-pocket amount first; the insurance company only begins covering eligible costs after the deductible is met. The other options describe: total claim payout (not deductible), policy premium (not deductible), and annual maximum claim limit (not deductible).

Answer:

It's the amount the insured person pays out of pocket before the insurance coverage kicks in