(1) A limit in an insurance policy stipulating the most it will pay for
all covered losses sustained during a specified period of time, usually a year.
Aggregate limits are commonly included in liability policies. While not often
used in property insurance, aggregates are sometimes included with respect to
certain catastrophic exposures—for example, earthquake and flood. (2) The
dollar amount of reinsurance coverage during one specified period, usually 12
months, for all reinsurance losses sustained under a treaty during such period.
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