What does aggregate mean on an insurance policy?
Asked by: Prof. Richmond Lueilwitz PhD | Last update: February 11, 2022Score: 4.3/5 (48 votes)
For various types of insurance, an aggregate limit is the maximum amount of money an insurer will pay for all your covered losses during the policy period, typically one year.
What is the difference between general liability and general aggregate?
What Is the Difference Between General Liability and General Aggregate? General liability describes the type of insurance policy you have. Your general aggregate is the maximum limit of coverage supplied by your general liability policy within the term.
What does per claim and aggregate mean?
The CNA professional liability insurance policy defines the per-claim limit as “the maximum the Insurer will pay for each claim first made against the Insured and reported to the Insurer during the policy year.” And the aggregate limit is defined as “the maximum the Insurer will pay for all claims first made against ...
What does 2000000 aggregate mean?
A small construction company may have a general liability policy with an aggregate limit of $2,000,000. ... The construction company owner above may have a $2,000,000 aggregate limit with a $1,000,000 per occurrence limit, which means his insurance company will only pay up to $1,000,000 for the damaged home.
What is an aggregate premium?
Aggregate Premium means the Premium required for all Members. Aggregate Premiums are shown on all Premium Statements. Application means the Employer enrollment form. ... Employer Enrollment Form means the Group's application for Coverage.
What does 'Aggregate' mean in an insurance policy?
What are aggregate claims?
Aggregate is a term that insurers use to define the total sum of money they will pay on claims in a given timeframe, usually one year - the length of your policy.
How does aggregate stop loss insurance work?
Aggregate stop-loss insurance is a policy designed to limit claim coverage (losses) to a specific amount. ... Aggregate stop-loss protects the employer against claims that are higher than expected. If total claims exceed the aggregate limit, the stop-loss insurer covers the claims or reimburses the employer.
What is an aggregate deductible?
An aggregate deductible means that the entire family deductible must be paid out of pocket before the company pays for services for one family member. ... The popularity of the aggregate deductible policy feature is because it puts a cap on the amount of money that the insured has to pay.
What is General Liability aggregate?
The general aggregate limit of liability refers to the most money an insurer can pay to a policyholder during a specified period. ... The aggregate limit of liability represents the payout limit for any and all claims for the entire term of the policy.
What is in the aggregate mean?
Aggregate is commonly employed in the phrase "in the aggregate," which means "considered as a whole." Aggregate also has some specialized senses. For example, it is used to describe a mass of minerals formed into a rock, and materials like sand or gravel that are used to form concrete, mortar, or plaster.
What does aggregate vs embedded mean in insurance?
The main difference between an “embedded” and “aggregate” deductible is that one individual cannot meet the deductible for the family with an embedded deductible whereas they can achieve this under an aggregate structure. This difference only does not impact participants enrolled in single coverage.
What does aggregate loss mean?
Aggregate Losses means the total amount of money you have actually Paid during the Benefit Period as indicated in the Schedule of Insurance, or on behalf of, all covered persons under your Employee Benefit Plan.
Is aggregate the same as umbrella?
A general aggregate is the maximum limit of coverage which applies to commercial general liability insurance policy. ... Umbrella insurance policy is an additional amount of coverage which is offered once the underlying limit of the general liability insurance is exhausted.
What is an aggregate cap?
The aggregate cap limits the total aggregate payments that any individual hospice can receive in a cap year to an allowable amount based on an annual per-beneficiary cap amount and the number of beneficiaries served.
Do auto policies have an aggregate?
Most business auto insurance policies have both per-occurrence and aggregate limits for these coverages. Per-occurrence limits usually dictate how much a policy will pay for claims arising from a single accident, and aggregate limits typically determine how much a policy will pay over the life of the policy.
What is aggregate cost of health insurance?
The “aggregate cost” of coverage is the entire plan cost, including both the employer and employee contributions. Self-funded plans are generally allowed to utilize the method used to determine applicable COBRA rates (without adding the 2% administration fee) to calculate the aggregate cost of a plan.
What is the difference between aggregate and stacked deductible?
Stacked deductible - Plan pays for an individual once the individual deductible is met, even on a two-person or family plan. Aggregate deductible - Full single or entire family deductible must be satisfied before benefits are paid.
What does aggregate mean in medical terms?
1. massing or clumping of materials together. 2. a clumped mass of material. familial aggregation the occurrence of more cases of a given disorder in close relatives of a person with the disorder than in control families.
How do you calculate aggregate stop-loss?
- First, the employer and stop-loss carrier establish the average expected monthly claims, for this example $300 PEPM.
- This figure is then multiplied by a percentage usually ranging between 110%-150%, for this example 150%.
What is the difference between specific and aggregate stop-loss?
While aggregate stop loss coverage protected a self-funded employer against higher-than-expected costs across its entire plan, specific stop loss puts a cap on the amount that the employer will pay for any one individual claim.
What is an aggregate factor?
Aggregate Factors: The dollar figures that are used to calculate a plan's maximum monthly and/or annual financial risk (i.e., the aggregate attachment point).
What is an example of an aggregate?
An aggregate is a collection of people who happen to be at the same place at the same time but who have no other connection to one another. Example: The people gathered in a restaurant on a particular evening are an example of an aggregate, not a group.
What is an aggregate amount?
adjective [ADJ n] An aggregate amount or score is made up of several smaller amounts or scores added together. The rate of growth of GNP will depend upon the rate of growth of aggregate demand. Synonyms: collective, added, mixed, combined More Synonyms of aggregate.
What does aggregate mean in taxes?
Aggregate Taxes means all federal, state and local income or franchise taxes deemed payable by the Company with respect to the aggregate income or gains (offset by losses and loss carryforwards) recognized by all of the Accounts held in the Trust and "Individual Trust Account Taxes" means, with respect to each Account, ...
What does no aggregate mean in insurance?
Aggregate — (1) A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually a year. Aggregate limits are commonly included in liability policies.