What does 'aggregate limit' refer to in insurance policy terms?

'Aggregate limit' in the context of insurance policies refers to the maximum amount an insurer will pay for all claims made within a specified policy period. This means that regardless of how many individual claims are filed or how large those claims may be, the insurer's total liability is capped at this aggregate limit.

For instance, if a policy has an aggregate limit of $1 million, the insurer will not pay more than that total amount for all claims combined during the policy year. If multiple claims occur, and their total exceeds this limit, the insured may have to cover any additional costs beyond that cap.

Contextually, the other options refer to different aspects of insurance policies: one discusses the number of policies an insurer can issue, another addresses the minimum premium required, and the last refers to individual claim limits. None of these capture the meaning of 'aggregate limit,' which is specifically concerned with the cumulative cap on payouts for all claims in a designated timeframe.