QUESTION 1 Which one of the following statements is correct with respect to deductibles used in commercial property policies? (2 points) Choose one answer. Reducing a deductible from $500 to $250 represents too small a reduction in loss payments to generate any reduction in premiums. Commercial property rates are developed with the assumption that the policy will be subject to a $5,000 deductible Rates are reduced in return for the insured's acceptance of a higher deductible. Because deductible amounts are generally small, they have no significant impact on loss costs and therefore, do not affect property rates. QUESTION 2 Worldwide Warehousing has a Building and Personal Property Coverage Form (BPP) with a $1,000,000 limit on a building and a $5,000 deductible. The warehouse suffers a $1,010,000 fire loss. Which one of the following amounts will Worldwide's insurer pay? (2 points) Choose one answer. $995,000 $1,010,000 $1,005,000 $1,000,000