What is a policy limit?

A policy limit is a term used in Insurance Claims Law that refers to the maximum amount of money an insurance company will pay out to cover a claim in Tennessee. It is the maximum amount of money an insurer will pay for a covered loss under the terms of the policy, as defined by the policyholder and the insurance company. A policy limit can vary and depends on the type of insurance coverage and the amount of coverage purchased. In Tennessee, an insurance policy must specify the maximum amount an insurance company will pay out for a covered loss. If the loss exceeds the policy limit, the policyholder is responsible for any additional costs associated with the claim.

Related FAQs

What is a self-insured retention (SIR)?
What is a statement of fact?
What is a policy limit?
What is an insurance appraisal?
What are the benefits of filing an insurance claim?
How do I know if an insurance claim has been settled?
What is an assignment of rights?
What is an insurance lien?
What is an affirmative defense?
What is the difference between an insurance policy and a benefit?

What is a policy limit?

Related FAQs

Related Blog Posts