What Is an Agent? An agent, in legal terminology, is a person who has been legally empowered to act on behalf of another person or an entity. An agent may be employed to represent a client in negotiations and other dealings with third parties. The agent may be given decision-making authority. Two common types of
What Is an Agent Bank? An agent bank is a bank that performs services in some capacity on behalf of an entity. An agent bank, also known as agency bank, can offer a wide variety of services for businesses looking to expand internationally. These banks generally act on behalf of another bank or group of
What Are Aggregate Hours? Aggregate hours is a statistic that is gathered by the U.S. Department of Labor (DOL). Aggregate hours represents the sum of hours worked by all employed people, either full- or part-time, during the course of a year. Aggregate hours can also refer to the total hours worked by one sector or group of
What is Aggregate Deductible? An aggregate deductible is the limit deductible a policyholder would be required to pay on claims during a given period of time. Aggregate deductibles are most likely to be features of product liability policies or policies that might result in a large number of claims during a certain time period. How an Aggregate
What Is Aggregate Demand? Aggregate demand is a measurement of the total amount of demand for all finished goods and services produced in an economy. Aggregate demand is commonly expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time. Key Takeaways Aggregate demand
What Is Aggregate Excess Insurance? Aggregate excess insurance limits the amount that a policyholder has to pay out over a specific time period. Also called stop-loss insurance, it is designed to protect policyholders who experience an unusually high level of claims that are considered unexpected. Aggregate excess insurance provides payment for total losses that occur over a
What Is an Aggregate Exercise Price? An aggregate exercise price is the total value of some underlying asset if one were to exercise all of their existing long options contracts on that asset. Put differently, it is the net amount of money needed to purchase the underlying when exercising a long call option, or the
Aggregate Extension Clause (AEC): An Overview An aggregate extension clause (AEC) in a reinsurance contract permits a single claim for numerous small losses of a similar nature. The clause generally covers reimbursement of a specific category of losses that exceed a stated amount. For example, say a glass manufacturer estimates its annual losses due to
What Is the Aggregate Level Cost Method? The aggregate level cost method refers to an actuarial accounting method that tries to match and allocate the cost and benefit of a pension plan over the span of the plan’s life. The aggregate level cost method typically takes the present value of benefits minus the asset value
What Is General Aggregate Limit of Liability? The general aggregate limit liability refers to the most money that an insurer can be obligated to pay to an insured party during a specified period. The contracts of commercial general liability (CGL) and professional general liability insurers cite these general aggregate limits in detail. Understanding Aggregate Limit of
