Which of the following statements about an excess insurance plan is tr

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

Answer: A