Exam DISC-IA Practice Question 209
Study guide: Exam DISC-IA
A contractor has a CGL policy with a $1,000,000 each occurrence limit and a $5,000,000 following form excess liability policy above it. A $300,000 claim arises from a job abroad, outside the CGL's coverage territory, so the CGL does not cover it. Which statement about the excess policy is correct?
- A) It pays nothing, because it covers only what the underlying policy covers
- B) It pays the $300,000 from the first dollar, because the underlying policy does not respond
- C) It pays $275,000, after the insured retains a $25,000 self-insured retention
- D) It requires the CGL to pay, because buying the excess layer extends the CGL's territory
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