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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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