Question

Which of the following terms describes a single limit of insurance that applies to all of that property type?

A) Blanket Limit
B) Aggregate Limit
C) Specific Limit
D) Primary Limit

Answer 1

A Blanket Limit is a single limit of insurance that applies to various properties or types of property, offering a combined coverage limit and flexible usage in the event of losses.

Step-by-step explanation:

The term that describes a single limit of insurance that applies to all of a particular property type is A) Blanket Limit. This type of insurance provides one overall coverage limit for multiple properties or types of property, rather than assigning a specific limit to individual items or locations. The blanket limit allows for more flexibility in dealing with losses, as the total coverage can be used where it's needed most without the constraints of individual limits for each item or location.