The deductible used for automobile collision losses is an example of a(n)
A)corridor deductible.
B)elimination period.
C)straight deductible.
D)aggregate deductible.

Question

Quizplus · Accepted Answer

The deductible used for automobile collision losses is a straight deductible, which means the insured must pay a fixed amount out of pocket before the insurance coverage kicks in. Corridor deductibles apply to health insurance policies and require the insured to pay all medical expenses until a certain amount is reached, at which point the insurance coverage kicks in. Elimination periods apply to disability insurance policies and require the insured to wait a certain period of time before receiving benefits. Aggregate deductibles apply to property and casualty insurance policies and require the insured to pay a certain amount in total before insurance coverage kicks in.

The Deductible Used for Automobile Collision Losses Is an Example