Question 57

Aggregate

The aggregate policy limit is not restored after payments on losses. Once the aggregate limit is reached, no further payments can be made under that policy, regardless of the number of claims.

A) Per person

The per person limit refers to the maximum amount that can be paid for each individual claimant. This limit is typically restored after a payment is made, allowing for new claims to be considered up to the maximum again.

B) Aggregate

The aggregate limit is the total cap on how much a policy will pay for all claims over a specific period. Once this limit is exhausted, it is not restored, meaning that no additional claims can be paid out under that policy until it is renewed or adjusted.

C) Per accident

The per accident limit applies to the maximum payout for a single incident. Similar to the per person limit, this limit is generally restored after a claim is paid, allowing for future claims related to different accidents.

D) Occurrence

The occurrence limit pertains to the maximum payout for each event that causes loss. This limit is also typically restored after a payment is made, permitting new claims arising from different occurrences.

Conclusion

The aggregate limit is uniquely defined as the total amount payable over the policy period and does not restore after losses are paid, which distinguishes it from the other options. The per person, per accident, and occurrence limits are all designed to allow for multiple claims up to their respective caps, making them fundamentally different from the aggregate limit.