The total amount of money which the Insurer will pay under the terms of a liability Policy for claims for damages caused by the insured or his Agent in the operation of a business. It usually applies only to property damage liability.
Insurance Encyclopedia
Aggregate Products Liability
The total amount of money which the Insurance Company will pay under the terms of a liability Policy for claims which arise out of the distribution or use of the products covered by the contract.
Aggregate Products Liability Limit
Represents the amount which an insurer will pay during the term of a policy for all Product Liability Claims which it covers.
Aggregate Protective Liability
The total amount which the Insurance Company will pay under the terms of a liability Policy for claims which may arise from acts of independent contractors. This is frequent found in the construction field.
Aggregate retention
The aggregate amount of risk retained by the insured, i.e. losses up to the level that are selfinsured rather than assumed by an insurer
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An additional retention kept net by the cedant of losses otherwise recoverable from the reinsurer. There are two retentions in a program having an aggregate retention. The first retention applies to each risk or occurrence. The second, or aggregate retention, applies to amounts that would normally be recoverable from the reinsurer. Only after the aggregate retention is exceeded can the cedant recover from the reinsurer.
Aggregate stop loss
Agreement in a managed care plan to relieve the amount of liability for insurance claims that are in excess of the amount anticipated for the contract year. Also see stop loss.
Aggregate stop loss insurance
Insurance coverage that becomes effective when an employer who has self-insurance has its total group medical insurance claims reach a specific threshold chosen by the employer. This threshold is a percentage of its yearly predicted group health claim costs.
Aggregated Diagnosis Groups (ADGs)
Under a system developed by Johns Hopkins University called adjusted clinical groups (ACGs) , ACGs are a comprehensive family of measurement tools designed to help explain and predict how health care resources are delivered and consumed. ACGs are based on building blocks called aggregated diagnosis groups (ADGs). ADGs are a grouping of diagnosis codes that are similar in terms of severity and likelihood of persistence of the health condition over time. There are two categories of ADGs, ambulatory diagnostic groups–major diagnostic category (ADG-MDC) and ambulatory diagnostic groups–hospital dominant (ADG-HosDom).
Aggregation clause
See: Claims Series Clause.