What term describes a situation where a separate limit per insured item applies?

The term that describes a situation where a separate limit per insured item applies is known as Specific Basis. This approach applies distinct coverage limits to individual items or categories of property, which means each item is insured to a predetermined amount and is treated independently of other items.

For example, in a homeowner's policy, if you have specific coverage limits for personal property, such as jewelry, artwork, or electronics, each of these categories will have its own separate limit regardless of the total value of all your belongings. This ensures that if a loss occurs, each specific item or category can be claimed up to its set limit without affecting the coverage of other items.

The other options refer to different methods of insuring assets. For instance, Blanket Basis involves one combined limit for a group of items, Aggregate Basis refers to a total maximum limit over a period, and Comprehensive Basis generally covers a wider range of risks but does not specifically pertain to per-item limits. Understanding these distinctions helps clarify the concept of how personal property is covered under insurance policies.