A general liability policy carries a $1,000,000 each-occurrence limit and a $2,000,000 general aggregate. The insurer pays $600,000, $500,000 and $400,000 on three separate premises claims in one policy year. How much general aggregate is left?
Explanation
Each claim is below the $1,000,000 each-occurrence cap, so all three are paid in full: 600,000 + 500,000 + 400,000 = $1,500,000. The general aggregate is the most the policy will pay for such losses in the policy year, so $2,000,000 − $1,500,000 leaves $500,000 for the remainder of the term. The each-occurrence limit caps a single loss and does not reset the aggregate, and premises and operations losses do erode the general aggregate.
This topic, taught in full in the California Property & Casualty Broker-Agent guide. California Property & Casualty Broker-Agent Study Guide — 2026 Edition — PDF + EPUB, $24.99 · 14-day refund →
Practice all 531 questions free — no signup required.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Related questions on this topic
- Which of these losses would a commercial general liability policy address under personal and advertising injury rather than under Coverage A?
- A visitor trips on a showroom step and runs up $3,000 in emergency-room bills, but the retailer is plainly not at fault. Coverage C of the retailer's general liability policy:
- A roofing contractor finishes a job, leaves the site, and two months later the roof leaks and ruins $40,000 of the owner's ceilings. This claim falls within:
- A manufacturer's general aggregate is fully exhausted in July by premises claims. In September a customer is injured by a defective product the manufacturer sold. The policy:
- A tenant business rents a storefront, negligently starts a fire, and causes $250,000 of damage to the leased building. Its liability policy shows a $300,000 damage to premises rented to you limit. The insurer:
- A liability insurer settles a suit for the full $1,000,000 each-occurrence limit and has already spent $180,000 defending it. On a standard general liability policy the insurer's total outlay is:
Last reviewed: · editorial process