term:

Deductible

deductible adj

: allowable as a deduction
de·duc·ti·bil·i·ty [-dək-tə-bi-lə-tē]
n

n : a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured against
;also
: the amount specified in such a clause compare franchise

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.