What is Limit of Indemnity? The Limit of Indemnity (LOI) is the maximum amount the insurer will pay under a policy during the policy period. Legal costs may be included within the Limit of Indemnity or may be covered as an additional amount, depending on the policy purchased.
How do you calculate limit of indemnity?
(Refer to PFɪmp;M Section 131.6-4) Maximum period of indemnity—suspends the coinsurance and will pay the business income for the 120 days following the date of loss.
What is maximum period of indemnity?
The maximum amount an insurer will pay for all claims over a set time frame.
What does limit of indemnity aggregate mean?
In the indemnity clause, one party commits to compensate another party for any prospective loss or damage. More common is in insurance contracts, in exchange for premiums paid by the insured to the insurer, the insurer offers to compensate the insured for any potential damages or losses.