Restoration of limits provision

Term · Insurance and risk management · MLC-T-INS-002921

A policy clause that automatically reinstates the original aggregate limit of liability after it has been reduced by the payment of a loss. This provision applies to future losses, not to the one that depleted the limit, and may require an additional premium. In liability policies, this restoration is distinct from a per-occurrence limit, which applies separately to each individual incident during the policy period.

Table 1. Record
Identifier	MLC-T-INS-002921
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002921",
  "term": "Restoration of limits provision",
  "field": "Insurance and risk management",
  "definition": "A policy clause that automatically reinstates the original aggregate limit of liability after it has been reduced by the payment of a loss. This provision applies to future losses, not to the one that depleted the limit, and may require an additional premium. In liability policies, this restoration is distinct from a per-occurrence limit, which applies separately to each individual incident during the policy period.",
  "url": "https://mlchart.com/terminology/insurance/restoration-of-limits-provision/"
}

Record 2,960 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.