What type of Ocean Marine deductible has no payment until the loss reaches a certain limit?

The correct choice highlights the concept of a franchise deductible within Ocean Marine insurance. A franchise deductible is structured so that an insurer does not make any payment for a loss unless the amount exceeds a specified threshold. Once this limit is surpassed, the insurer is responsible for paying the entire loss amount, with no reduction for the deductible.

This type of deductible is particularly beneficial in ocean marine scenarios where loss amounts can be substantial, and it encourages the policyholder to mitigate lower-level claims while providing coverage for more significant losses. The nature of the franchise deductible aligns well with the unpredictable and often high-value nature of marine exposures.

The other options reflect different approaches to deductibles: an aggregate deductible accumulates multiple losses over a period before payment is triggered; a standard deductible requires a specific dollar amount to be subtracted from each claim; and a specific deductible applies a set amount per individual claim, rather than conditionally based on a threshold like the franchise deductible does. Understanding these differences is crucial for agents to explain the nuances of marine insurance policies effectively.