Assume that a company has purchased property insurance with a $1,000,000 limit. They are looking for ways to reduce the amount of premiums that they pay. All else equal which of the following would have the greatest affect on lowering the premium price?

a. Adding a deductible or lowering the limit by equal amounts will have the same effect on the premium

b. Adding a 100,000 deductible

c. Reducing the limit of insurance by 100,000

d. No effect on premiums