What is the maximum amount an insurer will pay for all claims made within a policy period called?

The term "aggregate limit" refers to the maximum amount an insurer is willing to pay for all claims made within a specified policy period. This limit is crucial as it establishes the insurer's liability over the duration of the policy, ensuring that the insured has clarity on the total coverage available for multiple claims. The aggregate limit provides a form of protection for the insurer while also setting expectations for policyholders regarding their potential coverage.

In contrast, a deductible represents the amount that the insured must pay out of pocket before the insurance coverage kicks in, thus affecting the total payout for individual claims rather than setting a cap on all claims. A premium cap, while related to the cost of the insurance, does not pertain to the maximum payout for claims, but rather limits the amount that can be charged for the policy. Lastly, frequency limit generally addresses how often claims can be made to some extent but does not specify the total amount that can be paid for those claims. Together, these distinctions clarify why aggregate limit is the correct answer in this context.