Following catastrophic hurricane losses, South Coast Insurance Company

Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision.

Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n)
A) calendar-year deductible.
B) aggregate deductible.
C) straight deductible.
D) percentage deductible.

ANSWER

Answer: D