The 1 million dollar limit described for members is most commonly understood as the limit per what?

• A. Per claim
• B. Per year per member
• C. Per transaction
• D. Per office

Answer: (A)

A single-claim limit means the insurer will pay up to $1,000,000 for each individual claim arising from one incident. This is why the limit is understood as per claim: it applies to each separate lawsuit or demand, not to the total of all claims in a year. For example, if one claim requests $1.2 million for a single incident, up to $1 million could be paid for that claim, with the remainder potentially uncovered unless other coverage applies. If another separate claim arises later in the same period, it could again be paid up to $1 million, depending on the policy’s overall structure, such as any aggregate limit. The other options describe different ways limits could be framed, but they don’t match the typical per-claim liability structure.