I am a bit confused about the GL Limits Per Occurrence and Aggregates.
Does the aggregate decreases everytime a claim is paid out during the policy year?
Can you please give feed back on this?
Thank you,
Maritza
Hi Maritza,
You are correct. An aggregate limit is the amount that can be paid in the policy period. An aggregate limit is the maximum dollar amount the insurer will pay to settle your claims.
So for example if your aggregate limit is $20,000 you could make two claims of $10,000 or four claims of $5,000 or any other combination up to the aggregate limit. However if you made three claims of $7,000 each – the first two claims would be paid in full, the third claim would only be paid to a value of $6,000 with the claimant needing to make up the final $1,000 themselves.
Jan
Thank you Jan.
RE: Unit 3.
3.2 No Fault.
PIP, Who is covered:
3. Persons other than named insured and relatives.
Question: In one of the quiz questions
Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son, Jim and his and son’s friend, Joe, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Jim suffers $5,000 in injuries, and Joe suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries? ANSWER IS $10,400? I though regardless the maximum PIP Pay out is $10,000.
Please help me have this clear up because if is the way I am thinking then when it comes to other than family member payment is in addtion to the $10,000 maximum for named insured and relative in the household.
Thank you in advance.
remember.....PIP pays 80% of the medicals for resident relatives!
Petes injuries: $8,000 x 80% = $6400
Son Jim's injuries: $5,000 x 80% = $4000
son's friend Joes injuries: not covered because you are out of state. if in the state of florida, would be covered only if the son/son'd family did not have PIP coverage.
$6400 + $4000 = $10,400
MAX pip payout of $10,000 is per person
hope that helps! good luck!