A contractor has $1,000,000 liability coverage and must meet a $2,000,000 aggregate requirement. What additional aggregate limit is needed?
Correct Answer
A) $1,000,000.
The required aggregate exceeds current coverage by $1,000,000.
Why This Is the Correct Answer
The required aggregate exceeds current coverage by $1,000,000.
Why the Other Options Are Wrong
Option B: $500,000.
$500,000. is below the supported result for insurance certificates; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $2,000,000.
$2,000,000. is above the supported result for insurance certificates; it likely adds scope or money the rule does not allow.
Option D: $3,000,000.
$3,000,000. is above the supported result for insurance certificates; it likely adds scope or money the rule does not allow.
Memory Technique
Checking Certificate contract math: approved scope is the ruler for insurance certificates.
Reference Hint
Study anchor (closed-book): memorize Insurance certificates from CSLB 2026 Law Book; California insurance and contractor risk. / CSLB Law Book insurance and business risk management; know the rule or calculation trigger without relying on exam-room lookup.
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