Recruiter's Glossary

Examples: Policy Rider • Premium • Coinsurance

Policy Limit

Term from Insurance industry explained for recruiters

A Policy Limit is the maximum amount of money an insurance company will pay for a covered claim. Think of it as a ceiling or cap on insurance coverage. When people who work in insurance mention policy limits, they're talking about these maximum payment amounts, which are clearly stated in insurance contracts. Understanding policy limits is crucial because they affect how much protection a client has and influence insurance costs. Some similar terms you might see are "coverage limits," "liability limits," or "insurance limits." Insurance professionals need to understand these limits to properly explain coverage to clients and ensure they have adequate protection.

Examples in Resumes

Advised clients on appropriate Policy Limit selections based on risk assessment

Managed claims within Policy Limits for commercial property portfolio

Reviewed and updated Insurance Limits for high-net-worth clients

Negotiated Coverage Limits with carriers for complex commercial accounts

Typical job title: "Insurance Underwriters"

Also try searching for:

Insurance Agent Claims Adjuster Risk Manager Insurance Broker Insurance Underwriter Insurance Sales Representative Policy Administrator

Where to Find Insurance Underwriters

Professional Organizations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How do you determine appropriate policy limits for complex commercial accounts?

Expected Answer: Should discuss risk assessment process, industry standards, client financial position, regulatory requirements, and experience with similar accounts. Should mention consideration of excess/umbrella coverage needs.

Q: Explain how you would handle a situation where a claim exceeds policy limits.

Expected Answer: Should discuss communication with all parties involved, documentation procedures, explanation of coverage limitations, and potential solutions like excess coverage or payment arrangements.

Mid Level Questions

Q: What factors do you consider when recommending policy limits to clients?

Expected Answer: Should mention client assets, exposure to risk, regulatory requirements, industry standards, and cost considerations. Should demonstrate ability to explain these concepts to clients.

Q: How do you explain policy limits to clients who want to reduce their coverage?

Expected Answer: Should discuss clear communication of risks, use of real-world examples, cost-benefit analysis, and ability to present alternatives while maintaining professional recommendations.

Junior Level Questions

Q: What is a policy limit and why is it important?

Expected Answer: Should explain that policy limits are maximum amounts insurance will pay for covered claims, and discuss basic importance for both insurer and insured protection.

Q: What's the difference between per occurrence and aggregate limits?

Expected Answer: Should explain that per occurrence limits apply to each incident, while aggregate limits are the total amount payable during the policy period.