Final answer:
The true statement under a commercial General Liability policy is that 'Aggregate' refers to the maximum total amount that will be paid out during a policy year. It sets the insurer's liability limit for all covered losses in a policy period.
Step-by-step explanation:
Under a commercial General Liability policy, the following statement is TRUE: Aggregate refers to the maximum total amount that will be paid out during a policy year. This means that the aggregate limit is the insurer's maximum liability under the policy for all covered losses occurring within a specified policy period, like one year. This is in line with the fundamental law of insurance, which states that over time, the payments an average person makes into insurance must cover the claims, the costs of running the company, and allow for company profits.
The other options offered contain inaccuracies. Specifically, personal injury usually refers to injury to someone's body, emotions, or reputation, and is not strictly equivalent to bodily injury. However, under some policies, personal injury can include offenses such as libel, slander, false arrest, etc., and is a separate cover from bodily injury. Also, the statement regarding there being no limitation on payouts under the coverage is incorrect as policies typically have per-occurrence and aggregate limits. Lastly, each occurrence limit refers to the maximum that will be paid out for a single loss, not for all occurrences combined.