annual aggregate deductible
An annual aggregate deductible is a deductible-type program under which the insured agrees to reimburse its insurer for its own losses during the policy year up to the agreed upon annual aggregate amount.
Additional Information
Once the insured has paid losses up to that amount, the insurer pays the remainder of losses for the annual period without seeking reimbursement from the insured. It is also the amount by which a loss or applicable coverage limit is reduced in order to determine the amount of the insured's recovery. In standard property insurance practice, the deductible amount is subtracted from the amount of the adjusted loss; the insurer pays this reduced amount, and the insured is responsible for the deductible amount.
Summary
Synonyms
deductible
