Franchise

1. Relieves insurer of each and every loss that does not exceed a specified amount or percentage. If the limit is exceeded the loss is paid in full. The term, is distinguished from an excess, the amount of which continues to be deducted for each and every loss above the specified amount. 2. The amount by which a Lloyd’s syndicate is permitted to exceed its syndicate allocated capacity. 3. See LLOYD’S FRANCHISE.

Franchise deductible

A deductible within a policy that states claims under a certain amount or certain percentage of the policy are not covered. Claims that cost more than those amounts are entirely covered.
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Deductible in which the insurer has no liability if the loss is under a certain amount, but once this amount is exceeded, the entire loss is paid in full.
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Type of deductible which originated with marine Insurance under which no claim is payable unless if exceeds a stated amount or a stated percentage of the amount of Insurance. For any loss which exceeds that amount or percentage, the entire amount of the loss is paid.

Franchise Insurance

A form of insurance in which individual policies are issued to the employees of a common employer or the members of an association and the employer or association agrees to collect the premiums for the insurer.
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MEDICAL,USA Accident and health insurance contracts sold to individuals of a common employer in which the employer collects and remits the premiums to the insurer. Usually the premiums are deducted from the payroll.
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Uniform individual health insurance protection provided to groups of persons, usually in the same occupation or profession.