Deductible definition: Copy, customize, and use instantly
Introduction
The term "Deductible" refers to the portion of a loss, expense, or claim that an insured party is required to pay out-of-pocket before their insurance coverage applies. In legal and contractual contexts, "Deductible" is a key concept in insurance agreements, determining the financial responsibility of the insured in the event of a covered loss.
Below are various examples of how "Deductible" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Deductible" as a cost-sharing mechanism
This definition ties "Deductible" to cost-sharing.
"Deductible" means the amount of money that the insured party must pay out-of-pocket before an insurance policy begins to cover eligible losses or claims.
Definition of "Deductible" as a policyholder's initial payment
This definition focuses on the insured’s payment responsibility.
"Deductible" refers to the initial payment amount that the policyholder is responsible for covering before the insurer contributes to the remaining claim.
Definition of "Deductible" as a threshold for coverage
This definition ties "Deductible" to coverage thresholds.
"Deductible" means the minimum financial amount that must be met by the insured party before insurance benefits are applied to a claim.
Definition of "Deductible" as a risk-sharing provision
This definition highlights risk-sharing.
"Deductible" refers to a provision in an insurance policy that requires the insured to bear a specific portion of the risk by paying a predetermined amount before the insurer covers the rest.
Definition of "Deductible" as a reduction in claim payouts
This definition ties "Deductible" to claim adjustments.
"Deductible" means the amount subtracted from the total claim payout, representing the insured party’s financial obligation under the policy terms.
Definition of "Deductible" as a fixed out-of-pocket expense
This definition focuses on fixed expenses.
"Deductible" refers to a fixed amount the insured party is required to pay out-of-pocket for covered losses before the insurance provider covers any additional costs.
Definition of "Deductible" as a predetermined policy requirement
This definition ties "Deductible" to policy terms.
"Deductible" means a predetermined amount specified in the insurance policy that the insured must pay before the insurance coverage becomes effective for a claim.
Definition of "Deductible" as a tool for reducing premiums
This definition highlights premium adjustments.
"Deductible" refers to a cost-sharing mechanism that helps reduce insurance premiums by requiring the insured to assume a portion of the financial responsibility for claims.
Definition of "Deductible" as an insured’s financial contribution
This definition ties "Deductible" to financial contribution.
"Deductible" means the insured party’s financial contribution to a covered loss, which must be paid before the insurer provides payment under the policy.
Definition of "Deductible" as a limit on insurance provider liability
This definition focuses on liability limits.
"Deductible" refers to a provision that limits the insurer’s liability by requiring the insured to pay a specified amount of a covered claim before insurance coverage applies.
Definition of "Deductible" as a specified amount in insurance policies
This definition ties "Deductible" to policy specifications.
"Deductible" means a specific dollar amount or percentage outlined in an insurance policy that the insured party must pay before the insurer provides coverage.
Definition of "Deductible" as a policyholder's share of loss
This definition highlights the insured's share.
"Deductible" refers to the portion of a covered loss that the policyholder is required to pay out-of-pocket before the insurance company pays the remaining amount.
Definition of "Deductible" as a condition for claims processing
This definition ties "Deductible" to claim conditions.
"Deductible" means a financial threshold that must be met by the insured party as a condition for the processing and payment of claims under the insurance policy.
Definition of "Deductible" as an amount reducing insurance liability
This definition focuses on insurer liability.
"Deductible" refers to the amount deducted from an insurance claim, reducing the insurer’s liability and ensuring shared financial responsibility.
Definition of "Deductible" as a policyholder's minimum financial obligation
This definition ties "Deductible" to minimum obligations.
"Deductible" means the minimum financial obligation the policyholder must meet for each claim before the insurer contributes to the costs of covered losses.
Definition of "Deductible" as a threshold for insurance activation
This definition highlights coverage activation.
"Deductible" refers to the financial amount that acts as a threshold, activating the insurance coverage once the policyholder pays it.
Definition of "Deductible" as a tool for managing small claims
This definition ties "Deductible" to claim management.
"Deductible" means a provision designed to discourage small claims by requiring policyholders to cover a portion of losses before insurance coverage applies.
Definition of "Deductible" as a contractual obligation of the insured
This definition focuses on contractual terms.
"Deductible" refers to a financial obligation stipulated in the insurance contract, requiring the insured party to pay a fixed amount toward covered losses.
Definition of "Deductible" as a mechanism to lower premium costs
This definition ties "Deductible" to cost-saving strategies.
"Deductible" means a financial mechanism that allows policyholders to lower their premium costs by agreeing to pay a higher out-of-pocket amount for covered claims.
Definition of "Deductible" as a feature of risk-sharing agreements
This definition highlights risk sharing.
"Deductible" refers to a feature in risk-sharing agreements where the insured party agrees to bear a specific portion of financial responsibility for losses.
Definition of "Deductible" as a fixed or variable policy component
This definition ties "Deductible" to policy structures.
"Deductible" means a fixed or variable component of an insurance policy that determines the amount the insured must pay before receiving benefits.
Definition of "Deductible" as a financial benchmark in claims
This definition highlights claims benchmarks.
"Deductible" refers to a financial benchmark that defines the portion of a claim to be paid by the policyholder before insurance coverage applies.
Definition of "Deductible" as a clause promoting financial accountability
This definition ties "Deductible" to accountability.
"Deductible" means a clause in insurance policies that promotes financial accountability by requiring policyholders to pay a share of covered losses.
Definition of "Deductible" as a shared cost in risk mitigation
This definition focuses on risk mitigation.
"Deductible" refers to the portion of the cost shared by the insured to mitigate risks and reduce the insurer’s financial exposure.
Definition of "Deductible" as a monetary contribution toward loss recovery
This definition ties "Deductible" to loss recovery.
"Deductible" means a monetary contribution required from the insured to initiate the recovery process for a covered loss under the policy.
Definition of "Deductible" as a precondition for insurance claims
This definition highlights claims preconditions.
"Deductible" refers to a financial precondition that must be satisfied by the insured before an insurance provider processes or approves a claim.
Definition of "Deductible" as a policyholder's upfront payment
This definition ties "Deductible" to upfront costs.
"Deductible" means the upfront payment amount the policyholder is responsible for covering when a covered loss occurs.
Definition of "Deductible" as a threshold for shared financial responsibility
This definition highlights financial thresholds.
"Deductible" refers to the financial threshold that establishes the policyholder’s share of responsibility in a covered loss, before the insurer provides coverage.
Definition of "Deductible" as a buffer against frequent claims
This definition ties "Deductible" to claim frequency.
"Deductible" means a buffer in insurance policies designed to limit frequent claims by requiring the insured to cover minor losses.
Definition of "Deductible" as a mandatory policy condition
This definition highlights mandatory obligations.
"Deductible" refers to a mandatory condition in insurance policies requiring the insured to pay a set amount toward covered losses.
Definition of "Deductible" as a deterrent to trivial claims
This definition ties "Deductible" to discouraging minor claims.
"Deductible" means a provision in insurance policies intended to deter trivial or low-value claims by requiring the insured to pay a portion of the loss.
Definition of "Deductible" as an incentive for responsible behavior
This definition highlights behavioral incentives.
"Deductible" refers to a financial provision that incentivizes policyholders to act responsibly by sharing the costs of claims.
Definition of "Deductible" as a predetermined financial burden
This definition ties "Deductible" to burden sharing.
"Deductible" means the predetermined financial burden that the insured party must bear under the terms of the insurance agreement before coverage begins.
Definition of "Deductible" as a financial risk-sharing agreement
This definition highlights shared risks.
"Deductible" refers to a financial agreement between the insured and the insurer that allocates a portion of the risk to the policyholder.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.