Which description best defines a straight deductible?

• A. The insured pays the entire claim until the deductible is met.
• B. The insurer pays first, regardless of the deductible.
• C. The insured pays a fixed amount before the insurer pays.
• D. The deductible applies per policy period across all losses.

Answer: (C)

In a straight deductible, you must pay a fixed dollar amount for each covered loss before the insurer starts paying. It’s a set out-of-pocket amount you owe per incident, and after you’ve paid that amount, the insurer covers the remaining eligible expenses for that loss (up to policy limits). This differs from paying the entire claim until a deductible is met, or from an arrangement where the insurer pays first regardless of the deductible, or from an aggregate deductible that applies across the whole policy period. The fixed-per-loss payment model is exactly what the description describes.