- A maximum value agreed upon in an insurance policy limiting the amount of money the insured must pay before receiving full coverage after an accident or occurrence.
obligation amount, responsible portion, expense
Related Terms and Acronyms
- Deductible — Definition,
- A payment that a policyholder must make before an insurer is required to provide benefits.
- Qualifying Event — Definition,
- An event that qualifies for insurance coverage.
- Unallocated Benefit — Definition,
- A requirement for health insurance policyholders to pay reasonable hospital expenses out of pocket to a certain limit.