With a straight deductible, the insured must pay a certain number of dollars of loss before the insurer is required to make a payment

e.g., an auto insurance deductible

You insured your car with 500 $ deductible, then you have an accident, the loss is 200 $ and another accident the loss is 800 $. How much you should be in the first case and another case? And the same for insurance company?

An aggregate deductible, 5000 $

Jan, 1200

April 1800

31 December, 4000 $ = 7000 $ >5000 $

Anjali purchased a dining room set for $5000 and insured the furniture on an actual cash value basis. Three years later, the set was destroyed in a fire. At the time of loss, the property had depreciated in value by 50 percent. The replacement cost of a new dining room set at the time of loss was $6000. Ignoring anydeductible, how much will Anjali collect from her insurer? Explain your answer.