Policy limit discovery” refers to the process by which a claimant or plaintiff uncovers how much liability coverage an insurer has committed to pay under its insurance contract.

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Insurance policies come with predefined limits, which represent the maximum amount an insurer is obligated to pay for a covered loss. These limits can be expressed as per-incident, per-person, or aggregate amounts, depending on the nature of the policy.

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Policy limit tracing is the process of systematically identifying, verifying, and documenting the limits of insurance coverage applicable to a particular claim.