What is a characteristic of aggregate deductibles?

Aggregate deductibles are designed to apply to the total amount of claims incurred over a specific period, usually a policy year, rather than on a per-claim basis. This means that they allow a business to accumulate various claims until reaching a predetermined threshold, at which point the insurer starts to cover any additional claims. This feature provides a financial incentive for policyholders to manage their risks and costs more effectively over the year, as they can benefit from lower premiums and the cumulative effect of their claims.

In contrast, other options highlight characteristics that do not align with how aggregate deductibles function. For example, applying only to individual claims would limit their purpose, which is exactly the opposite of what aggregate deductibles do. Similarly, the unilateral nature of the deductibles in option C suggests that they are not influenced by negotiation, which doesn't expressly explain the primary utility of aggregate deductibles as they relate primarily to the total aggregate of claims incurred rather than individual negotiations. Lastly, the specificity to one business entity doesn’t capture the broader application of aggregate deductibles across different industries and types of businesses, which makes option B the most accurate reflection of their characteristics.