A CGL policy has a $1,000,000 per occurrence limit and a $2,000,000 general aggregate. During the policy year, there are three separate occurrences each causing $900,000 in covered losses. How much does the insurer pay in total?

Why this is the answer

Each occurrence of $900,000 is below the $1,000,000 per-occurrence limit, so the per-occurrence cap is not breached individually. However, the general aggregate limit is the maximum the insurer pays across all occurrences in the policy year. Three occurrences × $900,000 = $2,700,000 in losses, but the aggregate caps the total payout at $2,000,000. The insured bears the remaining $700,000. Distractor C ($1,800,000) is a common miscalculation — it assumes the insurer pays exactly two full occurrences and nothing for the third, but actually the insurer pays up to the aggregate across all three proportionally or sequentially until exhausted.