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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

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