The maximum amount an insurer is liable for is termed?

The maximum amount an insurer is liable for is termed?

• A. Limit of Liability
• B. Aggregate
• C. Combined Single
• D. Per Occurrence

Answer: (A)

The limit of liability is the maximum amount an insurer will pay for covered losses under a policy. It sets the cap on what the insurer is obligated to pay, regardless of how many claims or incidents arise. Policies may structure this cap in different ways: a per-occurrence limit caps payments for each individual incident; an aggregate limit caps total payments for all claims during the policy period; a combined single limit uses one ceiling for both bodily injury and property damage per occurrence. The general idea this term captures is the ultimate ceiling the insurer will pay, making it the best answer.

The limit of liability is the maximum amount an insurer will pay for covered losses under a policy. It sets the cap on what the insurer is obligated to pay, regardless of how many claims or incidents arise. Policies may structure this cap in different ways: a per-occurrence limit caps payments for each individual incident; an aggregate limit caps total payments for all claims during the policy period; a combined single limit uses one ceiling for both bodily injury and property damage per occurrence. The general idea this term captures is the ultimate ceiling the insurer will pay, making it the best answer.