(i) The maximum amount of benefits payable for a given situation or occurrence e.g., a limit of Rs. 5,00,000 on contents of a home or a Rs. 10,00,000 per accident limit for property damage liability policy. (ii) Ages limits below or above which the insurer will not issue a policy or above which it will not continue a policy presently in force.
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REINSURANCE: The maximum amounts of interest insured. The word can be used to describe a cedant’s retention, a cedant’s gross capacity or the maximum amount which may be reinsured under a reinsurance contract.
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The maximum benefit that will be paid out as a result of a loss. This term can also refer to the age at which an insurer will not issue a policy or will no longer continue a policy.