What does 'Aggregates Follow Aggregates in the Underlying Policies' mean?

• A. If there is an aggregate in the underlying policy, there is a corresponding umbrella aggregate that follows it
• B. The umbrella's aggregate overrides the underlying
• C. The umbrella has no aggregate if the underlying has none
• D. The umbrella uses separate per-claim aggregates

Answer: (A)

Aggregates follow aggregates in the underlying policies means the umbrella policy’s total limit for losses (its aggregate) is tied to and mirrors the aggregate limits of the underlying policies. In other words, if the underlying policies have an aggregate limit for the policy period, the umbrella’s aggregate follows that same level, coordinating with the underlying coverage. The umbrella remains excess coverage, stepping in after the underlying limits are exhausted, but its aggregate is aligned with whatever aggregate the underlying policies have.

This is why the statement that there is a corresponding umbrella aggregate that follows the underlying aggregate is correct: it describes the linked relationship between the umbrella and the underlying policies’ total limits.