Aggregate Limit
Maximum dollar amount of coverage in force under a health insurance policy, a property damage policy, or a liability policy. This maximum can be on an occurrence basis, or for the life of the policy. The following are examples:
- Health insurance. The insured was billed $107,000 for a serious illness, but the aggregate limit of the policy was $100,000 for the life of the policy, so the most that the insured could be reimbursed is $100,000. The insured would have to pay $7000. Any medical expenses arising from future illness would now have to be paid by the insured.
- Liability insurance. The insured is at fault in an automobile accident (single occurrence) causing injury to four individuals of $100,000, $150,000, $85,000 and $115,000, respectively, a total of $450,000. The aggregate limit of the policy is $400,000. The insured would have to pay the remaining $50,000.
Popular Insurance Terms
Model act written and published by the national association of insurance commissioners (naic) whose purpose it is to regulate brokers who control insurance companies. The act permits the ...
Method of pricing property and liability insurance. It uses charges and credits to modify a class rate based on the special characteristics of the risk. Insurers have been able to develop a ...
Cancellation of an insurance policy on the date that policy becomes effective. This type of cancellation does not require any fees to be paid to the insurance company. ...
Endorsement to a homeowners insurance policy or a personal automobile policy (pap) that covers physical damage to a snowmobile wherever it happens to be. Coverage can be on named peril or ...
Extension of a Workers Compensation and Employers Liability Insurance policy to cover workers who go aboard ship to perform their jobs. ...
Same as term Dividend Addition: option in a participating policy under which dividends are used to purchase fully paid-up units of whole life insurance. This option deserves careful ...
Coverage on an all risks basis for loss or damage to fur and jewelry at any location. Furs and jewelry must be scheduled in order to be covered. ...
Statistic indicating the degree of dispersion in a set of outcomes, computed as the arithmetic mean of the differences between each outcome and the average of all outcomes in the set. ...
Form of insurance whereby the buyer (reinsurer) assumes the entire obligation of the cedent company, effected through the transfer of the policies from the cedent to the books of the ...
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