Which option describes the 'separate aggregates apply to selected coverages' type of umbrella aggregate?

• A. Separate aggregates apply to selected coverages
• B. One aggregate applies to all coverages
• C. Aggregates follow aggregates in the underlying
• D. Per coverage limit separate from others

Answer: (A)

In umbrella liability, how the aggregate limits are organized determines how much the policy can pay across different coverages in a policy period. When separate aggregates apply to selected coverages, each of those coverages has its own annual aggregate limit, independent of the others. This structure keeps losses in one coverage from reducing the limits available to another, giving more predictable protection across coverages. For example, Bodily Injury might have its own aggregate and Property Damage its own, so a large Bodily Injury claim doesn’t deplete the Property Damage aggregate. If there were one aggregate for all coverages, a big loss in any area could exhaust the entire umbrella limit across all coverages.