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
LIFE INSURANCE: specification by each state regarding the minimum assumptions that must be used in reserve calculations as theypertain to the maximum interest rate that can be assumed; ...
Situation in which parties agree to take part in a structured settlement negotiation through the guidance of a neutral expert. By participating in this process, the parties do not agree ...
Same as term Final insurance: premiums paid out of funds borrowed from the cash value of a life insurance policy. ...
Same as term Coinsurance: ...
Statement in which a life insurance applicant is charged a higher-than-standard premium to reflect a unique impairment, occupation, or hobby, such as a history of heart disease or a circus ...
Evidence of a temporary contract obliging a life or health insurance company to provide coverage as long as a premium accompanies an acceptable application. This gives the company time to ...
Termination of coverage in insurance. ...
Model state law that stipulates minimum benefits that must be contained in the policy provisions, restrictions on policy illustrations, minimum reserve requirements, and minimum ...
Falsification of birth date by an applicant for a life or health insurance policy. If the company discovers that the wrong age was given, the coverage will be adjusted to reflect the ...
Have a question or comment?
We're here to help.