Aggregate Excess Contract

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Aggregate Excess Contract

A form of stop loss insurance whereby an insurer agrees to pay 80% to 100% (depending on the specific policy) of all costs a person or company incurs over and above the aggregate limit on another insurance policy. The aggregate limit is the total amount an insurance company will pay on a policy; thus, an aggregate excess contract helps defray costs in the event of a catastrophic loss that another policy does not fully cover.