Aggregate Limit describes which concept?

• A. The total coverage amount
• B. The monthly/yearly bill
• C. The deductible you pay before coverage kicks in
• D. The claim you think you've experienced

Answer: (A)

Aggregate limit is the maximum total amount the insurer will pay for all covered losses during the policy period. It caps the overall benefits you can collect in a year, regardless of how many claims occur. For example, if the aggregate limit is $1,000,000 and multiple claims total more than that in a year, the insurer will pay up to $1,000,000 in total. This is different from the deductible (the amount you pay before coverage starts) and from the monthly/yearly premium. Some policies also have a per-claim limit, which caps payment on any single claim, but the aggregate limit specifically governs total payouts across the entire period.