Which of the following is a method by which an umbrella's aggregate can be applied?

• A. Combined single limit policy aggregate
• B. Separate aggregates apply to selected coverages
• C. Aggregates follow aggregates in the underlying
• D. Per-claim maximum

Answer: (A)

An umbrella policy can cap all covered losses with a single combined aggregate, meaning there is one total limit that applies to all claims during the policy period regardless of the type of claim or coverage. This single pool makes the umbrella’s exposure straightforward: once that one limit is used up, no further payments are available under the umbrella for the period.

Other structures exist, such as setting separate aggregates for different coverages, which would create multiple caps rather than one shared limit. Some umbrellas are written to follow the aggregates in the underlying policies, tying the umbrella’s total to the underlying layers. A per-claim maximum describes the limit for each individual claim rather than a total for all claims, so it does not describe how the umbrella’s overall aggregate is applied.

So the method described here—a single combined aggregate—provides a unified cap across all covered losses.