What aggregate limit is required for liability insurance?

• A. $100,000
• B. $1,000,000
• C. $50,000
• D. $300,000

Answer: (D)

The aggregate liability limit is the total amount an insurer will pay for all covered claims within the policy period. For this requirement, the minimum acceptable total coverage is 300,000. That means the liability policy must provide at least $300,000 in aggregate coverage, so multiple claims during the year can be paid up to that combined limit.

Higher limits, like 1,000,000, would also meet the requirement, but the question asks for the required minimum. Note that some policies also have a per-occurrence limit; the aggregate cap is the overall cap across the whole period, so sum of all claims cannot exceed it even if several incidents occur.