|
|
Deductible
The term "deductible" refers to that amount of a claim filed by the holder of an insurance policy not covered by the terms of the policy. Normally in the negotiation of an insurance policy, a fixed amount is set for the deductible relative to the amount of premium or fee paid on a monthly (or other scheduled interval of payment) basis. It is fair to assume that the higher the amount of the deductible, the lower the required premium to maintain the policy.
For example, in the event of an automobile accident where the amount of damage incurred to the vehicle is $3,000 and the deductible on the policy held by the owner of the vehicle is $500, the vehicle owner must "meet" or pay the deductible of $500 before the benefits of the policy become available to cover the remaining $2,500. (It should be noted that claims are examined on a per case basis and not all aspects of the claim may be covered by the policy. Some elements of the claim or the totality of the claim may be "denied.")
More Glossary Terms Explained here
|
| |
| |
| |
| Suggest an Article |
| Haven´t found the article
you are looking for, please suggest your article. We value
all your suggestions and comments. |
 |
|
|
