What term describes the monetary limit the insurer will pay on a claim after deductibles?

The term that describes the monetary limit the insurer will pay on a claim after deductibles is known as the maximum limit. This is a crucial concept in insurance policies, as it delineates the highest amount the insurer is obligated to cover in the event of a loss, following any applicable deductibles that the policyholder must pay out of pocket.

In practice, understanding the maximum limit helps policyholders gauge the extent of their coverage and manage their risk appropriately. This limit is particularly significant when evaluating insurance premiums and determining the necessary coverage based on individual circumstances and potential losses.

Other options, while they may have some relevance in different contexts, do not accurately define this aspect of an insurance claim. The minimum limit often refers to the smallest amount of coverage that must be maintained, action limit is not a standard term in this context, and deductible limit does not encompass the total payment obligation of the insurer beyond the deductible.