Question

When shelving falls on two of Phil's customers at his store, his CGL covers their medical expenses under Medical Payments coverage. Which of the following will tell Phil the most his policy will pay to each injured party?

A. Per Occurrence Sub-Limits
B. General Aggregate
C. Conditions section
D. Products—Completed Operations Aggregate

Answer 1

The Per Occurrence Sub-Limits in Phil's CGL policy will determine the maximum amount that his policy will pay to each injured party for their medical expenses.

Step-by-step explanation:

The most Phil's policy will pay to each injured party is determined by the Per Occurrence Sub-Limits in his Commercial General Liability (CGL) policy.

The Per Occurrence Sub-Limits set a specific maximum limit on the amount the policy will pay for each incident or accident. This means that no matter how many people are injured or how high the medical expenses are, the policy will only pay up to the set sub-limit amount for each injured party.

Other policy limits like the General Aggregate and Products—Completed Operations Aggregate may restrict the overall coverage for all claims throughout the policy period, but the Per Occurrence Sub-Limits determine the individual payout for each injured party.