5
AssignmentDropdown

Mortgages and Home Ownership

Question 5 • Personal Finance - EL3403

A is the maximum dollar amount that an insurer will pay toward a claim under a policy.

Answer
A
policy limit
B
deductible
C
premium

Explanation

A policy limit is the maximum amount the insurer will pay for a covered claim under the policy. A deductible is the amount the policyholder pays before insurance coverage applies, while a premium is the cost of the insurance policy. Therefore, the correct choice is policy limit.

AI-written and checked against the verified answer.

Previous
Next