Los Angeles Claims Adjuster Property and Causality Practice Exam

What does the General Aggregate Limit in CGL cover?

1. All claims under Coverage A only

2. Claims related to personal injury only

3. Claims for all damages during the policy period

4. Only products-completed operations claims

The correct answer is: Claims for all damages during the policy period

The General Aggregate Limit in a Commercial General Liability (CGL) policy is designed to cover all claims for damages that arise during the policy period, across all types of coverage provided by the policy. This limit represents the maximum amount that the insurer will pay for all covered claims, excluding those specifically outlined under the products-completed operations hazard. It encompasses various types of damages, including bodily injury, property damage, and personal and advertising injury claims, as long as they occur within the specified policy period. This aggregate limit ensures that after a certain threshold is reached, no further claims will be paid out under the policy, providing both the insurer and the insured with clarity regarding their potential exposure. The other options do not capture the entirety of what the General Aggregate Limit encompasses. For instance, restricting coverage to only Coverage A or personal injury limits the scope significantly, while confining it solely to products-completed operations also misses the broader applicability of the limit across different claim types during the policy's duration.