Scribd Logo
Upload

Welcome to Scribd!

  • P - Coaching Actuaries 4.1.1

    Uploaded by

    maria
    13 views2 pages
    The document discusses deductibles in insurance policies. It provides two cases: 1) If the loss is less than or equal to the deductible, the policyholder bears the full cost of the loss. 2) If the loss exceeds the deductible, the insurer reimburses the policyholder for the amount of loss less the deductible. In both cases, the amount paid by the policyholder plus the insurer equals the total loss. The deductible acts as a cost-sharing mechanism between the policyholder and insurer.

    Original Description:

    Original Title

    - P - Coaching Actuaries 4.1.1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses deductibles in insurance policies. It provides two cases: 1) If the loss is less than or equal to the deductible, the policyholder bears the full cost of the loss. 2) If the loss exceeds the deductible, the insurer reimburses the policyholder for the amount of loss less the deductible. In both cases, the amount paid by the policyholder plus the insurer equals the total loss. The deductible acts as a cost-sharing mechanism between the policyholder and insurer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views2 pages

    P - Coaching Actuaries 4.1.1

    Uploaded by

    maria
    The document discusses deductibles in insurance policies. It provides two cases: 1) If the loss is less than or equal to the deductible, the policyholder bears the full cost of the loss. 2) If the loss exceeds the deductible, the insurer reimburses the policyholder for the amount of loss less the deductible. In both cases, the amount paid by the policyholder plus the insurer equals the total loss. The deductible acts as a cost-sharing mechanism between the policyholder and insurer.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    10/2/21, 9:52 AM - P - Coaching Actuaries

    MENU

    Learn P 4 4.1 4.1.1 Introduction

    Introduction

    Many insurance policies have deductibles. There is no coverage provided for losses below the
    deductible. The portion of loss below the deductible is the portion that is not covered by the
    policy. The portion above the deductible is the insurer's responsibility.

    Consider the following two cases:

    1. If the loss is less than or equal to the deductible, then the entire loss amount is uninsured.
    The policyholder has to bear the entire loss and the insurer pays nothing.

    2. If the loss is greater than the deductible, then only the portion below the deductible is
    uninsured. The policyholder will only be responsible to pay for the deductible. The insurer
    reimburses the policyholder the amount of loss less the deductible.

    In both cases, the sum of the amount paid by the policyholder and the amount paid by the
    insurer will always equal the original loss amount. For this reason, think of the deductible as a
    cost-sharing mechanism.

    Discussions

    Search... EXPAND

    ANSWERED
    ?
    13 Ashiful Bhuiyan Aug 21 2020

    A new version of Coaching Actuaries is available. REFRESH

    Don't see what you're looking for?

    https://account.coachingactuaries.com/a/p/learn/p/2138/2173/14636 1/2
    10/2/21, 9:52 AM - P - Coaching Actuaries

    Our coaches are here to answer your questions, help clarify, or further discuss the above content. If you
    don't see a thread that helps you, start one of your own!

    START A DISCUSSION

    Previous Lesson Next Lesson


    Read 4.1.0 Overview Read 4.1.2 Insurance Payment

    A new version of Coaching Actuaries is available. REFRESH

    https://account.coachingactuaries.com/a/p/learn/p/2138/2173/14636 2/2

    You might also like