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 ?
By putting the amount of the policy limits into an account maintained by the court, he said, it would let the court decide who gets what.
A New Jersey appellate court in a Superstorm Sandy case has ruled that, in the absence of a "special relationship," an insurance broker had no duty to provide a commercial property owner with quotes for higher flood insurance policy limits.
In this property damage loss transfer arbitration, Geico contended that the amounts sought by Nationwide exceeded Geico's policy limits.
OPPI basically provides excess layer protection above the underlying self-insured retention (SIR) policy limits.
If the policy period has lapsed in the meantime, a claim for the penalty damages may be denied, or the policy limits restricted.
Insurers facing policy limits demands must act cautiously under even the best of circumstances to avoid threats of bad faith.
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.