What is aggregate excess insurance?

What is aggregate excess insurance?

• A. Caps losses per single occurrence.
• B. Addresses loss frequency by providing coverage once a cumulative per occurrence loss limit is breached.
• C. Covers losses after a deductible is met.
• D. Is identical to specific excess insurance.

Answer: (B)

Aggregate excess insurance protects you for losses that add up over the policy period, not just a single big claim. It sits above the underlying coverages and starts paying once the total of all claims in the year exceeds a stated aggregate limit, up to the excess policy’s limit. This structure targets loss frequency—the piling up of multiple claims—because the trigger is the cumulative amount of losses, rather than a single event. That’s why this choice is best: it describes coverage that activates after the accumulated losses breach the aggregate limit. It’s not about a per-claim cap (that would be per-occurrence excess), it’s not simply a deductible, and it isn’t identical to specific (per-claim) excess insurance.

Aggregate excess insurance protects you for losses that add up over the policy period, not just a single big claim. It sits above the underlying coverages and starts paying once the total of all claims in the year exceeds a stated aggregate limit, up to the excess policy’s limit. This structure targets loss frequency—the piling up of multiple claims—because the trigger is the cumulative amount of losses, rather than a single event.

That’s why this choice is best: it describes coverage that activates after the accumulated losses breach the aggregate limit. It’s not about a per-claim cap (that would be per-occurrence excess), it’s not simply a deductible, and it isn’t identical to specific (per-claim) excess insurance.