A charge by an insurer for issuing a policy, as distinct from the premium.
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US: A one-time charge or flat per policy charge that does not change with the size of the policy.
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MEDICAL,USA: Dollar amount that an insurer adds to the basic premium rate to cover the insurer’s cost of issuing a policy, setting up the required records, and sending premium notices. Also called policy charge.

A now-defunct practice wherein a fee was assessed along with the first premium. This was done to offset initial costs. This term can also refer to a flat rate charge that remains the same regardless of the policy amount. This is used as a kind of quantity discount.

A Policy document setting down in writing the agreement between the insured and the Insurer.

The person who is insured under a contract of insurance.

Another term for limit of indemnity. It refers to the maximum amount payable under a policy of insurance or reinsurance, either overall or with reference to a particular section of the policy.
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The maximum amount a policy will pay, either overall or under a particular coverage.
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Usually synonymous with the unqualified term ‘limit’ as defined above, but may also be synonymous with ‘aggregate limit’ as defined above.

It is important that policy limits are adequate to cover both the cost of defense and damages. In choosing a limit the insured must consider any number of factors including size of firm, areas of practice, claims history, case size, and any other circumstances that will help him determine the maximum loss the firm may suffer in a worse case situation. Of course, higher limits increase the policy premium. However, since few claims rise to the level of maximum possible loss the extra charge for higher limits is on a sliding scale and therefore affordable. Policy limits are available on both a single limit and on a per claim and aggregate basis. The latter allows for multiple claims up to a per claim limits that the insured has determined adequate for any one claim, and is less expensive than choosing a single limit to cover multiple claims, where no one claim exceeds the per claim limit. In other words a single claim of Rs. 3 crore would cost more than a per claim and aggregate of limit of Rs. 1 crore/Rs. 3 crore and would serve no better in described example. One final thought in choosing an adequate limit is that multiple claims that result from a single or related group of incidents usually be will be considered as one claim under most policies.

A loan in the amount of the cash value of a policy. This loan is made by the insurer and uses the policy as collateral.