What is aggregate excess insurance?

• A. Addresses loss frequency by providing coverage once a cumulative per occurrence loss limit is breached.
• B. Provides coverage for a single catastrophic loss only.
• C. Covers losses beyond a dollar limit for the entire policy period.
• D. Covers legal liability for third-party claims.

Answer: (C)

Aggregate excess insurance provides protection for losses that accumulate over the entire policy period, kicking in only after total losses reach a stated aggregate limit and paying the covered amount up to the policy’s aggregate cap for that period. This means it sits above the primary layers and responds to the overall, year-long total rather than to individual incidents. It’s different from coverage that pays for each event up to a per-occurrence limit, or from coverage that only covers a single catastrophic event. So the option describing coverage for losses beyond a dollar limit for the entire policy period best captures how aggregate excess works.