An aggregate deductible is satisfied by:

• A. The insured paying all losses until the total reaches the aggregate amount during the policy period.
• B. A single loss paid in full.
• C. Applying only to per-claim limits.
• D. Being the same as a straight deductible.

Answer: (A)

Aggregate deductible means you must pay a total amount of covered expenses out-of-pocket during the policy period before the insurer starts to pay. The correct description is that the insured pays all losses until the cumulative amount reaches the aggregate limit within the policy period. After that point, the insurer covers subsequent covered costs per the policy terms. This concept isn’t about a single event satisfying a deductible—that would be a per-claim or straight deductible. It’s about the sum of multiple claims over the year meeting the yearly threshold. For example, with a $2,000 annual aggregate deductible, you’d pay the first $2,000 of covered costs; once that threshold is met, the insurer would begin paying the remaining covered costs for the rest of the year, subject to coinsurance and policy limits.