What Is Deductible?

Deductible across 7 exams

Deductible appears on the following exams. Each defines it in the context candidates are tested on:

Property & Casualty

The amount the insured must pay out of pocket on a covered loss before the insurer pays the remainder. Higher deductibles generally lower the premium.

Health Insurance

The fixed dollar amount the insured must pay out of pocket for covered medical expenses before the insurer begins to pay benefits.

Personal Lines

The portion of a covered loss the policyholder must pay out of pocket before the insurer pays the remainder. A higher deductible generally lowers the premium.

All-Lines Adjuster

The fixed amount the insured must pay out of pocket toward a covered loss before the insurer pays the remainder of the claim.

Surplus Lines

The amount of loss that the insured agrees to bear personally before the insurance coverage begins to pay. Higher deductibles typically result in lower premiums, while lower deductibles provide more complete financial protection from losses.

Health-Only Insurance

The fixed dollar amount the insured must pay out of pocket for covered services before the insurer begins to pay. It typically resets on a defined period, usually annually.

Public Adjuster

The portion of a covered loss the policyholder must pay out of pocket before the insurer pays the remaining amount of the claim.