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
What is an Aggregate Limits Reinstatement Aggregate Limits Reinstatement is an insurance policy clause that allows policy limits to be returned to their maximum amount during the policy’s extended reporting period. These reinstatements are used when the original limits of the policy have been impacted by claims paid, or by any other impairment that reduces
What Is an Aggregate Mortality Table? An aggregate mortality table is a tool that helps actuaries and other insurance professionals gather key data regarding death rates. To properly price insurance products and ensure that life insurance companies maintain adequate reserves, actuaries develop projections of future insured events that may lead to a payout, such as
What Are Affiliated Companies? Companies are affiliated when one company is a minority shareholder of another. In most cases, the parent company will own less than a 50% interest in its affiliated company. Two companies may also be affiliated if they are controlled by a separate third party. In the business world, affiliated companies are
What Is Affiliate Marketing? Affiliate marketing is an advertising model in which a company compensates third-party publishers to generate traffic or leads to the company’s products and services. The third-party publishers are affiliates, and the commission fee incentivizes them to find ways to promote the company. Key Takeaways Affiliate marketing is a marketing scheme in
What Is Affirmative Action? The term affirmative action refers to a policy aimed at increasing workplace and educational opportunities for people who are underrepresented in various areas of our society. Affirmative action focuses on demographics with historically low representation in leadership, professional, and academic roles. It is often considered a means of countering discrimination against
