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Definition

Retained limit

Definition (1):

The retained limit is a term found in an umbrella liability policy that refers to (1) the total limits of the underlying insurance or any other insurance available to the insured, or (2) the deductible stated in the declarations if the loss is covered by the umbrella policy but not by any underlying insurance or other insurance, whichever is applicable.

Definition (2):

According to the lawinsider.com dictionary, “Retained limit means the amount stated on the Declarations page and all endorsements listed on the Declarations page, which will be paid by the Covered Party before the Authority is obligated to make any payment from the pooled funds.” The MOC (Memorandum of Coverage) consists of the Declarations Page and all listed endorsements on the Declarations Page at its effective date. It is the coverage document between the Authority and the Covered Party. This MOC’s terms may not be waived or changed except the Authority’s issued endorsement to be this MOC’s part. This MOC is applicable to losses happening during the defined coverage period in the Declarations.

Definition (3):

The retained limit refers to the possible limits of “underlying insurance” scheduled in the "self-insured retention" or the Declarations, whichever is applicable.

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