Aggregate excess insurance is described as:

• A. Caps losses from a single occurrence.
• B. Provides coverage after a cumulative per-occurrence loss limit is breached.
• C. Addresses loss frequency by providing coverage once a cumulative per occurrence loss limit is breached.
• D. Replaces the need for a security deposit.

Answer: (C)

Aggregate excess insurance focuses on losses that accumulate over the policy period, stepping in only after the total of those losses reaches an agreed cumulative limit. This means the protection is tied to how many losses occur and the total amount of those losses, not just the size of a single claim. When the accumulated losses breach the aggregate attachment point, the excess layer provides coverage for additional losses up to its own limit. That’s why it’s described as addressing loss frequency—more claims that push the total higher trigger the coverage.

It’s not about capping losses from one event, which would describe per-occurrence excess, and it doesn’t replace a security deposit.