Definition
Policy limits
Personal injury demand terminology
Direct answer
The maximum amount an insurance policy will pay for a covered claim, which frames what a demand can realistically recover from that policy.
NORBU Demand Editorial · Last reviewed 2026-08-31
In detail
What policy limits means in practice
Available coverage, layered policies and underinsured motorist coverage shape demand strategy. Coverage facts belong in the file before the demand is written.
Why it matters
Demand strategy without confirmed coverage information is guesswork.
Example
A $50,000 bodily injury limit confirmed by a carrier disclosure letter in the file.
Related terms
Nearby vocabulary
Go deeper
NORBU Demand provides analytical support for counsel. It does not determine legal value, predict settlement outcomes, or provide legal advice. Every observation is presented for attorney review.
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