In some contracts with deductibles, the insurer pays the full claim then seeks reimbursement from the insured for the deductible portion of the contract. In some jurisdictions, such arrangements are also known as “large deductibles”. The resulting policy premium for such large deductible policies is expected to be smaller than if no deductible existed. Different accounting systems may choose to treat the premium reduction due to the deductible credit differently. For example, regulatory accounting systems may wish to gross up the reported premiums for such deductible credits, with regard to premium assessment systems. For example,.
