Policy limit

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Policy limit

The maximum dollar amount of coverage provided by an insurance company for a certain policy.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Pricing for Insure My Closing begins at $199 and is based on overall policy limits and transaction timeline.
Cyber policy limits also grew in 2018, with average limits purchased by all companies hitting nearly $21 million, an 11 percent rise.
Travelers offered its policy limits, the two attorneys said, but Hanover did not respond to several demands by Brummel, after which she withdrew those demands and offered to enter into an agreement under section 537.065.
lithe dwelling is not repairable, the company will adjust your claim in accordance with your policy limits and will reimburse you for the cost of the inspections.
Determining appropriate policy limits requires careful consideration of a variety of factors, such as firm revenue, regulatory requirements, risk exposures from services and clients, firm and partner assets, loss prevention programs, and risk appetite.
The Shugarts submit that instead it is the tender of the tortfeasor's underlying policy limits, not the accident itself, that triggers the notice provision in the UIM policy.
This means policy limits will last longer and owners don't end up shelling out vast sums from their own pockets to continue with vital cover for their beloved pets.
The new policy limits guests to a two-dog maximum and, also, includes an 0-pound total weight limit.
In January 2012, while Gulati's report was pending, Landers filed a civil remedy notice (CRN), alleging, among other things, claim delay, failure to promptly and properly investigate the claim, failure to adjust the loss and failure to tender policy limits.
As an adjuster, settlement with the insureds was easy because the cost to repair exceeded the policy limits by thousands of dollars.
In this property damage loss transfer arbitration, Geico contended that the amounts sought by Nationwide exceeded Geico's policy limits. Despite this, the arbitrator made an award in excess of those limits.