Exam DISC-IA Practice Question 820
Study guide: Exam DISC-IA
A CGL policy with a $2,000,000 general aggregate is issued for January 1 to December 31. In November the insurer agrees to extend it to March 31 of the next year. By then $1,700,000 of general-aggregate claims have been paid. How much general aggregate is available for claims in the extension?
- A) $0, because an extension added after issuance carries no limits of its own
- B) $300,000, because the extension is treated as part of the last annual period
- C) $2,000,000, because limits apply separately to any remaining period under 12 months
- D) $500,000, because the aggregate is prorated to the three months of the extension
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