The maximum amount that the insurer will pay in respect of all insured losses that occur during the policy term. No further claim is payable once the limit has been exhausted unless it has been reinstated by policy condition or agreement. Aggregate limits are common to professional indemnity insurance and product liability insurance. Under some covers the insurer may also impose a limit per claim or occurrence.

A prospective benefits funding method used to calculate contributions required to secure pension benefits. No standard contribution rate is determined. Instead a modified contribution rate is calculated as that which, if paid over the expected future membership of the active members, would be sufficient, taking account of the actuarial value of assets, to provide for the benefits. The modified contribution rate is also called the recommended contribution rate.

System used by insurer or managing agent to record, monitor and control their total aggregate exposures by country of risk, class of business, years of exposure or other appropriate variable. For example, in the exempted classes of financial guarantee insurance Lloyd’s calls upon managing agents to run systems that enable syndicates to avoid excessive exposure to any one obligor, industrial sector, location or insured nationality, in any one obligor country. The totals are regularly monitored to ensure that any limits are not exceeded.

A table based on the rate of mortality according to age. No allowance is made for the duration of the insurance. Aggregate tables are used for the valuation of life contracts.

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

***

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.

Where the defendant pleads contributory negligence, the claimant’s contribution to the accident may be excused if he acted ‘in the agony of the moment’. In Jones v. Boyce (1816) the claimant, fearing that a fast-driven coach would overturn, broke his leg when jumping for safety. The coach did not overturn but his action was justified. The principle of ‘alternative danger’ applies to emergencies generally and may apply even when property is under threat.

Marine insurer’s clause agreeing to return a certain part of their premium in return for a subsequent improvement in the character of the risk or in respect of a reduction in their potential liability under the policy. For example, cargo may be carried by a safer route than the one initially contemplated.

Aviation insurers pay total losses on aircraft on an agreed value basis rather than on the basis of the replacement value of the aircraft taking account of its age and condition. The agreed value is also used as the basis of settling partial loss claims. Insurers normally allow an agreed value of 10 per cent more or less than the market value when arranging the cover.

These vehicles, including trailers when attached, are separately rated and insured by motor insurers depending on the nature of the machine and its value.