Deductible: $2000.00 Event 1 Description Tree damage Foundation repairs Repair cost $2,500.00 $25,000.00 Event 2 Which of the reasons listed below is a benefit of paying the entire repair cost of Event 1 out of pocket, without submitting an insurance claim? A. To avoid premium increases C. To avoid deductible changes B. The $500 difference is small D. Claims always cost more

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 26P
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Deductible: $2000.00
Event 1
Description Tree damage
Repair cost $2,500.00
A. To avoid premium increases
C. To avoid deductible changes
Event 2
Which of the reasons listed below is a benefit of paying
the entire repair cost of Event 1 out of pocket, without
submitting an insurance claim?
ational Academy of Science. All Rights Reserved.
Foundation repairs
$25,000.00
B. The $500 difference is small
D. Claims always cost more
Transcribed Image Text:Deductible: $2000.00 Event 1 Description Tree damage Repair cost $2,500.00 A. To avoid premium increases C. To avoid deductible changes Event 2 Which of the reasons listed below is a benefit of paying the entire repair cost of Event 1 out of pocket, without submitting an insurance claim? ational Academy of Science. All Rights Reserved. Foundation repairs $25,000.00 B. The $500 difference is small D. Claims always cost more
Expert Solution
Step 1

Insurance claim

A formal request for compensation for damages covered by your insurance policy is known as an insurance claim. An insurance policy is a contract between you and your insurer. You are required to pay a set premium.

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