What does Annual Aggregate Deductible mean? Read on to discover the definition & meaning of the term Annual Aggregate Deductible - to help you better understand the language used in insurance policies.
Annual Aggregate Deductible
(1) 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. 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. (2) 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.
We hope the you have a better understanding of the meaning of Annual Aggregate Deductible.