What type of deductible applies to a range of claims throughout a policy year?

The correct answer is based on the concept of how deductibles function within a policy year, particularly in the context of health insurance and some other types of insurance.

A calendar year deductible is a fixed dollar amount that the insured is required to pay out of pocket for covered medical expenses within a specific policy year, usually coinciding with the calendar year (January 1 to December 31). Once this deductible is met, subsequent claims for covered services typically require no additional deductible payments for the remainder of that year. This means that the deductible applies to a range of claims throughout the policy year, covering multiple incidents and treatment types until the deductible amount is satisfied.

This setup contrasts with other types of deductibles, such as a specific per-incident deductible, which only applies to individual claims, requiring payment for each separate occurrence rather than cumulative expenses over the year. A corridor deductible applies only when expenses exceed a certain level but before reaching the maximum coverage limit, making it a less common structure for general claims handling. An aggregate deductible also has properties that apply over time but is often associated with specific group health insurance plans where expenditures within a group context are pooled.

Understanding the nature of a calendar year deductible helps policyholders anticipate their out-of-pocket costs and manage their