The maximum amounts of interest insured. The word term can be used to describe a CEDENT's RETENTION, a cedent's gross capacity, or the maximum amount which may be reinsured under a reinsurance contract. Also LIMIT.
The maximum amount an insurance policy will pay in the event of a claim. Most accounts receivable insurance policies have three types of Limits of Liability: Policy Limit of Liability â€“ the overall governing liability paid under a single policy. All other Limits of Liability are subject to this liability. Country Limit of Liability â€“ the maximum liability paid for a given country under a policy. Buyer Limit of Liability â€“ the maximum liability paid for a specific buyer approved under the policy.