in what way does a deductible help an insurance company?\n○ it adds to the company’s pool of funds.\n○ it…

in what way does a deductible help an insurance company?\n○ it adds to the company’s pool of funds.\n○ it increases consumers’ insurance premiums.\n○ it lowers the payout the company has to make.\n○ it reduces consumers’ co - payments.

in what way does a deductible help an insurance company?\n○ it adds to the company’s pool of funds.\n○ it increases consumers’ insurance premiums.\n○ it lowers the payout the company has to make.\n○ it reduces consumers’ co - payments.

Answer

Brief Explanations:

To determine how a deductible helps an insurance company, we analyze each option:

  • "It adds to the company’s pool of funds": A deductible is the amount the insured pays before the insurer pays, so it doesn't add to the company's fund pool in that way.
  • "It increases consumers’ insurance premiums": A deductible typically doesn't directly increase premiums; in fact, higher deductibles may lead to lower premiums for consumers.
  • "It lowers the payout the company has to make": A deductible means the insured pays a portion first, so the insurance company pays less (lower payout) when a claim is made. This is how a deductible helps the insurance company.
  • "It reduces consumers’ co - payments": A deductible and co - payment are different concepts, and a deductible doesn't reduce co - payments.

Answer:

C. It lowers the payout the company has to make.