What Is the Aggregate Product Liability Limit? The aggregate product liability limit is the maximum payout an insurance company will make during the life or term of an insurance product. It is one of the six different limits listed in a commercial general liability (CGL) insurance policy. Key Takeaways The aggregate product liability sets a
What Is Aggregate Risk? Aggregate risk is often defined as the total amount of an institution’s exposure to foreign exchange counterparty risk deriving from a single client. Foreign exchange (FOREX) contracts—both spot and forward—involve a counterparty who is responsible for holding up their side of an agreement. If an institution has made too many agreements with
What Is Aggregate Stop-Loss Insurance? Aggregate stop-loss insurance is a policy designed to limit claim coverage (losses) to a specific amount. This coverage ensures that a catastrophic claim (specific stop-loss) or numerous claims (aggregate stop-loss) do not drain the financial reserves of a self-funded plan. Aggregate stop-loss protects the employer against claims that are higher
What Is Aggregate Stop-Loss Reinsurance? In aggregate stop-loss reinsurance, losses over a specified amount during the contract period are covered by the reinsurer and not by the original insurer or ceding company. Key Takeaways To ensure that insurance companies remain solvent and are able to cover their claims, many regulators require insurance companies to reduce
What Is Aggregate Supply? Aggregate supply, also known as total output, is the total supply of goods and services produced within an economy at a given overall price in a given period. It is represented by the aggregate supply curve, which describes the relationship between price levels and the quantity of output that firms are
What Is Aggregation? Aggregation in the futures markets is a process that combines of all futures positions owned or controlled by a single trader or group of traders into one aggregate position. Aggregation in a financial planning sense, however, is a time-saving accounting method that consolidates an individual’s financial data from various institutions. Aggregation is
What Is an Aggregator? An aggregator is an entity that purchases mortgages from financial institutions and then securitizes them into mortgage-backed securities (MBSs). Aggregators can be the issuing banks of the mortgages or subsidiaries within the financial institutions themselves. They can also be brokers, dealers, correspondents, or another type of financial corporation. Aggregators earn a profit
What Is an Aggressive Growth Fund? An aggressive growth fund is a mutual fund that seeks capital gains by investing in the shares of growth company stocks. Investments held in these funds are companies that demonstrate high growth potential, but also carry greater risk. As such, aggressive growth funds seek to provide above-average market returns;
What Is Adjusted Gross Income (AGI)? Adjusted gross income (AGI) is the figure that the Internal Revenue Service (IRS) uses to determine your income tax liability for the year. It is calculated by subtracting certain adjustments from gross income, such as business expenses, student loan interest payments, and other expenses. After calculating a taxpayer’s AGI
What Is Aging? Aging is a method used by accountants and investors to evaluate and identify any irregularities within a company’s accounts receivables (ARs). Accounts are sorted and inspected according to the length of time an invoice has been outstanding, enabling individuals to get a better view of a company’s bad debt and financial health. Aging can
