What does an aggregate limit mean under liability insurance policies? - ProProfs Discuss
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What does an aggregate limit mean under liability insurance policies?



A. It is the most the insurer will pay for any one accident.
B. It is the most the insurer will pay for all losses during any one policy period.
C. It is the maximum limit for each claim when multiple claimants are arising out of the same occurrence.
D. It is the single largest limit that applies when a loss is covered by two or more policies issued by the same insurer.

This question is part of Practise Exam 1
Asked by Wyatt Williams, Last updated: Jan 07, 2020

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1 Answer

John Smith

John Smith

Answered Mar 10, 2017

It is the most the insurer will pay for all losses during any one policy period.

An aggregate limit is a maximum limit that applies to all losses during a policy period. Each individual loss is subtracted from the aggregate limit and reduces the remaining coverage. At each policy anniversary or renewal, the aggregate limit is reinstated in full.
 

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