A corridor deductible is usually described as which of the following?

• A. A fixed dollar amount per loss
• B. A percentage of total costs after the deductible
• C. A time-based waiting period
• D. A per-claim cap on benefits

Answer: (A)

A corridor deductible is described as a fixed dollar amount paid by the insured for each covered loss before the policy starts sharing costs. It resets with each new loss, not once per year or as a percentage of the bill. For example, if the corridor deductible is $500 and a covered bill is $3,000, you would pay the first $500, and the remaining $2,500 would be processed under the policy terms (subject to coinsurance and limits). This is different from a percentage deductible (which would charge a portion of the bill), a time-based waiting period (which delays coverage), or a per-claim cap on benefits (which limits how much the insurer pays per claim).