Which of the following terms describes what is subtracted from a claim payment to the insured?

The term that describes the amount subtracted from a claim payment to the insured is a deductible. A deductible is a specified amount that must be paid out of pocket by the insured before an insurance company will pay for any covered loss. This concept is common across various types of insurance policies, including property and casualty insurance, and serves to encourage policyholders to take care when submitting claims.

Deductibles can vary in amount, depending on the policy terms, and they reduce the insurance company's liability. For example, if a policy has a $500 deductible and the insured files a claim for $2,000, the insurer will typically pay $1,500 after the deductible is applied. Understanding this term is crucial for managing expectations regarding how much an insured might receive after a claim and reinforces the importance of considering deductible amounts when purchasing insurance policies.

Other terms, such as coverage limit, policy premium, and claim threshold, serve different purposes in insurance but do not specifically refer to amounts subtracted from claim payments. Coverage limits indicate the maximum amount the insurer will pay for a particular claim, the policy premium is the cost of purchasing the insurance coverage, and claim threshold is not a standard term used in this context. Thus, the correct identification of a deductible is