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
Provision of a property insurance policy which covers conditions usually present in a particular location. For example, there is an inherent risk of explosion in a flour mill. ...
Bill that allows the insurance company to include a clause in its policy that permits the policyholder to make a policy loan at a variable interest rate on new policies. Under this clause, ...
Coverage in which individuals who cannot obtain conventional automobile liability insurance, usually because of adverse driving records, are placed in a residual insurance market. Insurance ...
Estate under the legal and administrative guidance of both the surety and the fiduciary. Any actions on the part of the estate requires the signatures of both in order to reduce the chances ...
Allocation of monetary resources to equities. ...
Combination of several policies with each adding an additional layer or limit of coverage above the limits of the policy that comes before it. For example, Policy A adds $100,000, then ...
Person, business, or organization specified as the insured (s) in a property or liability insurance policy. In some instances, the policy provides broader coverage to persons other than ...
Coverage for property damage or destruction of an insured's property and liability exposure of an insured for damage or destruction of someone else's property under his or her care, ...
Statutory liabilities minus the interest MAINTENANCE RESERVE minus the ASSET VALUATION RESERVE. ...
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