A Michigan contractor's general liability policy has a $2 million aggregate limit and $1 million per occurrence limit. They have two claims: $800,000 and $1.2 million. How much will the insurance company pay total?
Correct Answer
D) $1,800,000
The first claim pays $800,000 (under per occurrence limit). The second claim pays $1,000,000 (limited by per occurrence maximum). Total paid: $1,800,000, which is under the $2 million aggregate.
Why This Is the Correct Answer
The first claim pays $800,000 (under per occurrence limit). The second claim pays $1,000,000 (limited by per occurrence maximum). Total paid: $1,800,000, which is under the $2 million aggregate.
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