Aggregate Limit of Liability
Definition
- A limit on the amount of liability a claimant can place on an insurer for a specific time period, regardless of how many legitimate claims may have taken place in the aforementioned time period.
Synonyms
cutoff point, cumulative limit, greatest extent
Related Terms and Acronyms
- Exposure — Definition,
- How much liability an insurer takes on when they write an insurance policy.
- Finite Reinsurance — Definition,
- A reinsurance arrangement where the reinsurer only takes on a limited amount of risk from the ceding party.
- Indemnity — Definition,
- An arrangement where one party assumes liability for another party.
- Insurance (insur) — Abbreviation,
- An arrangement where one party provides financial protection to another party for specific damages or losses.
- Insurance Policy — Definition,
- A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
- Liability — Definition,
- A situation where one party is found to be legally responsible for something.
- Period of Indemnity — Definition,
- The amount of time where insurance benefits are required to be paid by an insurance policy.
- Policy Declarations — Definition,
- The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
- Stop Loss Insurance — Definition,
- A low premium, high deductible insurance policy with an upper limit on coverage.
