Policy limit

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Policy limit

The maximum dollar amount of coverage provided by an insurance company for a certain policy.

Policy Limit

The maximum benefit an insurance company will pay a policyholder if/when an insured event occurs. For example, a health insurance policy may have a policy limit of $2 million. This means that the most the insurance company will pay in the case of catastrophic illness is $2 million. Many policy limits are rather high and most policyholders do not need to worry about medical bills of, say, $2 million. However, some long-term illnesses may result in medical bills that approach the limit. See also: Pre-existing condition.
References in periodicals archive ?
Stauffer, President & CEO, commented that: "Oil Insurance Limited is committed to providing long term value to its membership by offering significant policy limits with broad terms and conditions, returning excess value by way of premium credits and dividends when appropriate as well as potentially considering additional coverages to enhance the overall value proposition of being a member.
The trial court granted summary judgment for the insurance company, but the appellate court reversed and remanded, finding that an insurer has an affirmative duty to initiate settlement discussions where "liability is clear, and injuries so serious that a judgment in excess of the policy limits is likely.
Policy limits range up to $15 million, the company said, and the product features automatic reinstatement of policy limits for independent directors.
This Alabama case illustrates how one malpractice insurance carrier, in refusing a claimant's offer to settle within insurance policy limits, did a disservice to one physician
County policy limits stolen-vehicle pursuits for public safety concerns.
Putting aside the priciples of indemnity, the challenge of Mierzwa was the idea that an insurer would owe policy limits no matter how de minimus the damage caused by a covered peril.
The new policy limits the opportunities available to foreign investors who want to participate in the growth and development of media industries in the country.
If policy limits are exhausted, the personal assets of the insured persons will be at risk.
Hauglin was represented by his insurance company, Mid-Century, which had issued a policy to Hauglin with policy limits of $50,000 per person and $100,000 per accident.
Ideally, the insurance company will then tender policy limits or pay whatever is necessary to absolve the defendant from exposure to personal financial liability.
which recognized that a policyholder had a cause of action against his liability insurer for negligently refusing a settlement offer within policy limits (1).