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nydimaria [60]
3 years ago
14

Brock decides to reduce his long-term care policy's lifetime maximum benefit, which will decrease the premium and make the cover

age more affordable. What is this practice known as?
Social Studies
1 answer:
Vlad1618 [11]3 years ago
6 0

<u>Answer: </u>

The practice of reducing the insurance premium in order to make the coverage more affordable is known as 'loss control'.

<u>Explanation: </u>

  • In some cases, an insurance cannot be claimed as it is modified and agreed on certain terms and conditions. In such cases, the one who holds the policy has to possibly face a loss.
  • In order to reduce such loss that may possibly occur from the policy, the policyholders choose to do loss control by choosing to reduce the benefit, which in turn decreases the amount of premium to be paid.
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