To determine the coverage available to pay the damaged third party, we need to consider the policy limits and the amounts already incurred.
The General Aggregate Limit is $600,000, which represents the maximum amount the policy will pay for all covered claims in the policy period.
The Per Occurrence Limit is $300,000, which represents the maximum amount the policy will pay for each individual covered claim.
Given that the insured has already incurred $500,000 of paid liability claims in the policy period, we need to subtract this amount from the available coverage.
To calculate the coverage available:
- Start with the General Aggregate Limit of $600,000
- Subtract the amount of paid liability claims already incurred ($500,000)
- The remaining coverage available is $100,000.
Therefore, the answer is (a) $100,000. This is the amount of coverage available to pay the damaged third party if a verdict is rendered against the named insured.