A standard CGL declarations page shows a $1,000,000 Each Occurrence Limit and a $2,000,000 General Aggregate Limit. The insured pays a $700,000 bodily injury claim early in the policy year and later faces an unrelated $600,000 claim. Assuming both are Coverage A losses subject only to the General Aggregate, how much will the insurer pay on the second claim?
Explanation
Each individual occurrence is capped by the EACH OCCURRENCE LIMIT ($1,000,000); $600,000 is well within that. The General Aggregate caps the TOTAL the insurer pays during the policy period for covered losses (other than Products-Completed Operations). After paying $700,000, the aggregate retains $1,300,000, so the full $600,000 second claim is paid. (The Products-Completed Operations Aggregate is a separate limit.)
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