Disappearing Deductible
Definition of "Disappearing deductible"
In property insurance, amount that an insured does not have to pay when a loss exceeds a predetermined sum; here the insurance company pays more than 100% of the loss, so that the deductible amount specified in a contract "vanishes." For example, if a deductible amount is $100, an insurance company may pay 125% of the losses exceeding $100,150% of the losses exceeding $200, and if the losses exceed $300, the company pays the total amount of the loss (so that the insured does not assume any deductible for losses over $300). In another application an insured pays 125% of all losses over $100, the deductible disappears for any loss of $500 or more.
Popular Insurance Terms
Return of employer contributions to a pension if that plan is (1) newly established and is determined by the IRS not to be tax qualified; or (2) long established but the IRS disallows a ...
Agreement that eliminates tariffs among the United States, Canada, and Mexico over a 15-year period. Approximately 65% of United States agricultural and industrial exports would be eligible ...
Formal process of setting aside funds on a mathematical basis to provide deferred income benefits. ...
a large number of homogeneous exposures (in order for the deviation of actual losses from expected losses to approach zero, and thecreditability of the prediction to approach one). loss ...
Physical handing of an insurance policy to the insured. Sales training emphasizes the importance of delivery of a policy by the agent. This develops a caring attitude on the part of the ...
Regulations of the national association of insurance commissioners (naic) that dictate provisions that all individual health insurance policies must contain. All states now require these ...
Trade association whose objective is to further the interests of its membership, as well as to inform the public on the role of its members. ...
Coverage usually provided under the commercial general liability insurance (CGL); it can also be purchased separately. ...
Extremely aggressive behavior by an insurance agent to convince a prospect to purchase the insurance product without due regard for the prospect's ability to pay the premiums and/or needs ...
Have a question or comment?
We're here to help.