Option B - deductible is correct.
Deductible is used to minimize small nuisance claims that helps to keep insurance premiums. It is the amount that the insured pays out pocket before the insurance plan starts to pay. Deductible reduces insurance premium. If the deductible is higher then the insurance premium will be cheaper.
Arbitration is a means of settling dispute between an insurance company and the insured, both parties agree to settle a dispute by accepting a decision made by a third party.
Valued policy requires that an insurance company has to pay the full value of a policy to the insured in the event of a total loss.
Coinsurance is the amount or a fixed percentage, an insured must pay against a claim after the deductible is satisfied.
Deductible-answer b is correct. many property insurance policies have a deductible, which is the amount of a claim the insured has to absorb before the insurance applies. deductibles reduce the cost of insurance by eliminating small claims. the amount of the deductible is stated in the declarations. arbitration is a means of settling claims disputes when the insured and the company disagree on the value of property. a valued policy is one under which a certain value for property is stated in the policy, regardless of its value at the time of any loss. coinsurance is a means by which insureds share in partial losses if they have not insured their property for full value.