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Margaret [11]
3 years ago
14

A CGL policy with a general aggregate limit of $300,000 and a per-occurrence limit of $100,000 would have how much remaining aft

er paying a claim for a $200,000 loss, and subsequently a second claim for a $100,000 loss?
Business
1 answer:
Sergeeva-Olga [200]3 years ago
6 0

Answer:

$100,000

Explanation:

Data provided in the question:

General aggregate limit of CGL policy = $300,000

Per-occurrence limit = $100,000

Now,

For the first claim  for a $200,000 loss the maximum amount paid will be the Per-occurrence limit i.e $100,000

Subsequently for a second claim for a $100,000 loss the amount paid will be minimum of the Per-occurrence limit or the loss amount claimed i.e $100,000

Therefore,

Total amount of claim provided by the insurer till second claim

= $100,000 + $100,000

= $200,000

Thus,

Amount remaining

= General aggregate limit of CGL policy - Total amount of claim provided by the insurer till second claim

= $300,000 - $200,000

= $100,000

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  • Investing in newest technology might not bring value to the company because it is not attracting potential customers but it might pay off later in the form of developed customer loyalty.

Operational implications

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In the scenario described above, an effective communication can be achieved by ensuring that your viewpoints are clearly understood by the audience.

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