In aggregating deductible scenarios, the aggregating deductible is subtracted from the reimbursement.

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Multiple Choice

In aggregating deductible scenarios, the aggregating deductible is subtracted from the reimbursement.

An aggregating deductible reduces the amount paid by the insurer. It works like a single deductible that is applied to the total reimbursement, so you subtract that deductible from the reimbursement amount. In this case, the aggregating deductible is $50,000, so the payout is reduced by $50,000. For example, if the reimbursement eligible was $100,000, you’d receive $50,000 after applying the deductible; if the reimbursement were $50,000, you’d receive $0. This is why the correct conclusion is that the reimbursement is reduced by $50,000.

An aggregating deductible reduces the amount paid by the insurer. It works like a single deductible that is applied to the total reimbursement, so you subtract that deductible from the reimbursement amount.

In this case, the aggregating deductible is $50,000, so the payout is reduced by $50,000. For example, if the reimbursement eligible was $100,000, you’d receive $50,000 after applying the deductible; if the reimbursement were $50,000, you’d receive $0. This is why the correct conclusion is that the reimbursement is reduced by $50,000.

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