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    Question

    What is the purpose of "excess" in an insurance policy?

    A To increase the premium cost Correct Answer Incorrect Answer
    B To reduce the premium cost Correct Answer Incorrect Answer
    C To increase the coverage amount Correct Answer Incorrect Answer
    D To avoid small claims Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    An excess (also known as a deductible) is the amount the insured is responsible for paying before the insurance company starts to pay for a claim. This helps reduce the premium cost.

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