Which statement about the deductible is correct?

• A. A deductible increases the insurer's payment after a loss.
• B. A deductible reduces the insured's claim payment by the deductible amount only if the loss is above the deductible.
• C. A deductible eliminates the need for a claim investigation.
• D. The purpose of the deductible is to eliminate small claims that the insured can afford and which would cost the insurance company to administer.

Answer: (D)