ABC Corp. is insured under a CGL with the following limits: General Aggregate $2
ID: 2685139 • Letter: A
Question
ABC Corp. is insured under a CGL with the following limits: General Aggregate $2,000,000. Products/ Completed Operations Aggregate $2,000,000. Personal & Advertising Injury Limit $1,000,000. Each Occurrence Limit $1,000,000. Fire Damage Limit $50,000. Medical Expense Limit $5,000. What dollar amount if any will be paid if the following losses occur? If a loss is not covered or is not fully covered explain why. What is the aggregate balance left if all claims occur in the same policy period? a. A defective appliance built by ABC causes injury to Joe who bought the appliance. The court awards Joe $800,000. b. One of ABC's drivers has an accident while making a delivery in an ABC truck. The other driver has a loss of $10,000. for property damage and $100,000. for bodily injury. c. ABC is blamed for a fire in a building they rent. The total damage is $25,000. d. A forklift truck turned over in the warehouse injuring a customer. His liability claim was $50,000. e. An ABC employee was also injured in the forklift accident and had medical bills of $1,500.Explanation / Answer
ABC Corp. is insured under a CGL with the following limits: General Aggregate $2,000,000. Products/ Completed Operations Aggregate $2,000,000. Personal & Advertising Injury Limit $1,000,000. Each Occurrence Limit $1,000,000. Fire Damage Limit $50,000. Medical Expense Limit $5,000.
What dollar amount if any will be paid if the following losses occur?
If a loss is not covered or is not fully covered explain why. What is the aggregate balance left if all claims occur in the same policy period?
a. A defective appliance built by ABC causes injury to Joe who bought the appliance. The court awards Joe $800,000.
b. One of ABC's drivers has an accident while making a delivery in an ABC truck. The other driver has a loss of $10,000. for property damage and $100,000. for bodily injury.
c. ABC is blamed for a fire in a building they rent. The total damage is $25,000.
d. A forklift truck turned over in the warehouse injuring a customer. His liability claim was $50,000. e. An ABC employee was also injured in the forklift accident and had medical bills of $1,500.