MANAGEMENT

Detailed explanation-1: -A deductible is the amount of money that you are responsible for paying toward an insured loss. When a disaster strikes your home or you have a car accident, the deductible is subtracted, or “deducted, ” from what your insurance pays toward a claim.

Detailed explanation-2: -A deductible is the amount you must pay before the insurance company pays anything on a claim. You usually pay a lower premium if you choose a higher deductible. Example: Let’s say that your Comprehensive coverage has a $500 deductible. If a storm causes $1, 500 of damage to your car, you must pay the first $500.

Detailed explanation-3: -An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims.

Detailed explanation-4: -Insurance companies make money in two main ways: Charging premiums to the insured and investing the insurance premium payments.