2015#9 - basic limit

Why it's $100,000 for basic limit not $200,000? Thank you.

Comments

  • The wording of the question is a bit vague here because it doesn't tell us the type of claim. In general, the basic limit for a claim is $100,000 except for medical expenses which are $5,000. The aggregate limit of $200,000 applies to a claim when the claim involves multiple parties and types of event. For example, a fire causes $100k in damage, $100k in BI, and 3x $5,000 in medical expenses in a single year would be capped at $200,000.

  • Can I say 100k is limit per claim per type of cost, 200k is per event per year?

  • It's better to say 100k per claim per type of cost (except for med), and 200k in aggregate over a policy year.

  • But, if it is aggregate over a policy year, why we don't limit the losses in the 1st table on the top?

  • We're trying to say the same thing. For a given event covered by the policy, the per-occurrence limit is $100k and the aggregate limit is $200k for that event. The event itself could be a fire, advertising injuries, or something like a recall of a particular product.

  • Thank you. Do you mean that you finally agree with my interpretation in September 22: "Can I say 100k is limit per claim per type of cost, 200k is per event per year?"

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