Question

Company A has the following two layers of liability insurance policies: CGL policy: each occurrence limit $1,000,000; general aggregate limit $2,000,000. Umbrella policy: each occurrence limit $5,000,000; aggregate limit $80,000,000. Suppose during the policy period three separate liability losses occurred: $600,000, $1,100,000 and $1,100,000 (in the order). The umbrella policy will cover $______________

Answer 1

Particulars	Event 1	Event 2	Event 3	Total
Loss amount	$        600,000	$     1,100,000	$     1,100,000	$ 2,800,000
Less: CGL policy	$      (600,000)	$   (1,000,000)	$      (400,000)	$(2,000,000)
Paid by unmbrella policy	$                   -	$        100,000	$        700,000	$     800,000

Umbrella policy will pay $800,000