ABSTRACT
Aggregation mechanisms define 'one loss' for applying a (re)insurance policy’s deductible and cover limit. Chapter 2 deals with the concepts of 'ultimate net loss', 'individual loss', 'individual claim', 'individual occurrence', 'deductible', 'cover limit' and 'sublimit'. In presenting these different concepts, the inconsistent terminology used in the (re)insurance markets is discussed.
The chapter reveals that in English law, there are no uniform rules on how to identify individual losses. This translates into substantial legal uncertainty, as individual losses can be considered the building blocks of aggregation.
