The deductible used for automobile collision losses is an example of a(n)
A)calendar year 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 that the insured is responsible for paying a specific dollar amount out of pocket before the insurance company will start paying for any damages. It is not a calendar year deductible, as it applies to each individual claim, not to the entire year. It is not an elimination period, which typically applies to disability insurance and refers to the waiting period before benefits begin. It is also not an aggregate deductible, which applies to multiple claims or losses within a specified time period.

The Deductible Used for Automobile Collision Losses Is an Example