Annual aggregate limit refers to the maximum amount of coverage that an insurance policy provides for all claims or losses incurred by the insured during a specific policy year. This limit represents the total sum of money that an insurance company is liable to pay out for multiple claims or losses within a given year. Once the aggregate limit is reached, the insurance company is no longer responsible for covering any additional claims or losses until the policy is renewed or a new policy is purchased. The annual aggregate limit helps protect the insurance company from excessive financial liability and ensures that the insured has a clear understanding of the maximum coverage available for a specific policy year.
An annual aggregate limit is a cap on the total amount of benefits that an insurance policy will pay out over the course of a year. This limit applies to all claims made during the policy period, regardless of the number or type of claims. Once the limit is reached, the policyholder is responsible for any additional costs. Annual aggregate limits are commonly used in health insurance policies, but can also be found in other types of insurance, such as liability insurance. It is important for policyholders to understand their annual aggregate limit and plan accordingly to avoid unexpected expenses.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/annualaggregate-limit/
- Modern Language Association (MLA):Annualaggregate Limit. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/annualaggregate-limit/.
- Chicago Manual of Style (CMS):Annualaggregate Limit. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/annualaggregate-limit/ (accessed: May 09 2024).
- American Psychological Association (APA):Annualaggregate Limit. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/annualaggregate-limit/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts