What term denotes the maximum limit of liability payable?

What term denotes the maximum limit of liability payable?

• A. General Aggregate Limit
• B. Comprehensive General Liability
• C. Indemnify
• D. Peril

Answer: (A)

The main idea here is understanding how insurance limits cap what an insurer will pay. In a CGL policy, the general aggregate limit is the total cap on liability the insurer will pay for all claims combined during the policy period. It represents the overall maximum the insurer will cover, across all incidents, unless the policy specifies otherwise. That’s why it’s the best choice: it specifically denotes the maximum amount payable in total. The other terms don’t describe a total payout cap—per occurrence limits apply to a single event, the policy name isn’t a limit, and indemnify is the act of compensating rather than a payment cap, while peril is a cause of loss.

The main idea here is understanding how insurance limits cap what an insurer will pay. In a CGL policy, the general aggregate limit is the total cap on liability the insurer will pay for all claims combined during the policy period. It represents the overall maximum the insurer will cover, across all incidents, unless the policy specifies otherwise.

That’s why it’s the best choice: it specifically denotes the maximum amount payable in total. The other terms don’t describe a total payout cap—per occurrence limits apply to a single event, the policy name isn’t a limit, and indemnify is the act of compensating rather than a payment cap, while peril is a cause of loss.