Plain-English meaning
The maximum amount the insurer will reimburse for eligible claims during a policy year, subject to the policy terms.
Why the exact wording matters
A high reimbursement percentage can still leave substantial owner cost if the annual limit is reached. Check whether any benefit-specific sublimits apply inside the overall limit.
Where to verify it
- Definitions section
- Coverage or insuring agreement
- Exclusions
- Benefit or limit schedule
- Claims section
- State endorsement when applicable
Write this down when comparing policies
| Field | Policy A | Policy B |
|---|---|---|
| Annual Limit | ||
| Where defined | ||
| What changes a claim | ||
| Question for the carrier |