Final answer:
The question asked is about the minimum general liability insurance required for licensed agencies. It is given context through examples of how insurance systems work, including an automobile insurance example and deposit insurance for banks.
Step-by-step explanation:
Licensed agencies must carry at least $1,000,000 in general liability insurance. The question pertains to the minimum amount of general liability insurance that licensed agencies must carry. To provide context, we can consider an example of how insurance operates with an example of automobile insurance. In this example, a group of 100 drivers is divided into three risk groups with varying levels of damages and associated costs. The fundamental law of insurance comes into play here, stating that the average person's payments into insurance over time must cover their claims, the costs of running the insurance company, and allow for the firm's profits. In the banking sector, a similar concept exists in the form of deposit insurance, where banks pay into the Federal Deposit Insurance Corporation to insure depositor's bank deposits up to a certain limit.