In insurance, what basis applies a separate limit per insured item?

The specific basis is the correct answer because it refers to an insurance arrangement where each insured item has its own designated limit of coverage. This means that in the event of a loss or claim, the insurer is liable to pay up to the specific limit for each individual item, regardless of the total value of other insured items in the policy. This structure is particularly beneficial for policyholders who have different values of items, as it ensures that each item is adequately protected without being grouped or averaged together.

On the other hand, the blanket basis typically covers multiple items under a single limit, which does not provide separate limits for each item. The aggregate basis refers to a total limit that applies to a group of items, similar to the blanket approach but focused on an overall maximum payout rather than specific limits per item. Comprehensive basis generally describes coverage that includes a wide range of perils rather than addressing the limits for individual insured items.