Straight Deductible Clause
Definition of "Straight deductible clause"
Section of a policy that specifies the dollar amount or percentage of any loss that the insurance does not pay. Most property and medical policies specify that the first portion of any loss is absorbed by the insured. A straight deductible clause, which is common in auto and homeowners insurance, might provide for a deductible stated in a dollar amount, such as $500. For example, the Smiths have a homeowners policy with a $500 straight deductible clause. Fire damage to the home amounts to $1500. Under the terms of the policy, the Smiths would pay the first $500 and the insurance company would reimburse them for $1000. Some straight deductibles are expressed as a specific percentage of value rather than a dollar amount. For example, the insured might absorb the loss for 5% of the value of property that is totally destroyed.
Popular Insurance Terms
Single policy under which one individual is insured. ...
Disability in which a wage earner is forever prevented from working at full physical capability because of injury or illness. ...
Insurance that covers each and every loss except for those specifically excluded. If the insurance company does not specifically exclude a particular loss, it is automatically covered. ...
Form of cash refund annuity used by contributory pension or employee benefit plans. When employee participants die before receiving all of their contributions in the form of retirement ...
Same as term Commercial Health Insurance: coverage that provides two types of benefits, disability income (DI) and medical expenses. Sold by insurance companies whose business objective is ...
Record of insurance policies sold to an individual. ...
Type Of GUARANTEED INVESTMENTS CONTRACT in which funds for the contract are put in the insurance company's general account ...
Insurance coverage for pitfalls associated with travel. The coverage can be classified as follows: Trip Cancellation the travelers) must cancel the trip because of unforeseen circumstances ...
Length of employment as measured to determine eligibility, vesting, and benefit levels for employee participants in tax qualified pension plans. There is often a requirement that years of ...
Have a question or comment?
We're here to help.