Which of the following statements about an excess insurance plan is true?
A) The insurer does not participate in a loss until the loss exceeds the amount the firm has decided to retain.
B) The insurer pays first up to some specified level; the insured then pays all losses exceeding the insurer's retention level.
C) Losses in excess of a specified amount are not covered.
D) The insured and insurer share equally in any loss that occurs.
Answer: A
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A) 27.5 B) 31.25 C) 28.75 D) 29.25
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