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:
Explanation
A general liability policy carries two annual caps: the general aggregate for premises and operations and most other losses, and a separate products–completed operations aggregate for injury or damage arising out of the insured's products and completed work. Exhausting one leaves the other untouched, so the September product claim is paid from its own aggregate, subject to the each-occurrence limit. Aggregates do not reinstate mid-term, and the form contains no proration of the kind described.
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