Study guide
11.1 CGL Limits of Insurance and Aggregates
Alaska Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Alaska Property & Casualty Insurance Exam Overview
Alaska Property & Casualty Exam Overview
3 National Portion: Insurance Fundamentals
1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority
4 National Portion: Property Insurance Concepts
2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses
5 National Portion: Dwelling Policies (DP)
3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage
6 National Portion: Homeowners Policies - Forms & Section I
Homeowners Forms HO-2 through HO-8 and Eligibility Section I Coverages A-D and Additional Coverages Section I Perils Insured Against and Exclusions Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
Section II Coverages E (Liability) and F (Medical Payments) Homeowners Conditions and Duties After Loss Common Homeowners Endorsements
8 National Portion: Personal Auto Policy - Liability & Injury
6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists
9 National Portion: Personal Auto Policy - Physical Damage & Duties
7.1 Part D Coverage for Damage to Your Auto 7.2 Exclusions and Part E Duties After an Accident 7.3 Part F General Provisions, Endorsements, and No-Fault Concepts
10 National Portion: Liability Insurance Concepts
8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury
11 National Portion: Commercial Property Insurance
9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP
12 National Portion: Commercial General Liability - Coverages
10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments
13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions
11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements
14 National Portion: Commercial Auto Insurance
12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements
15 National Portion: Workers Compensation
13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements
16 National Portion: Other Commercial Lines - BOP, Crime & Marine
14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)
17 National Portion: Other Commercial Lines - Specialty & Professional
15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability
18 National Portion: Other Commercial Lines - Surety, Flood & Specialty
16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines
19 National Portion: Insurance Regulation & Market Conduct
17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations
20 National Portion: Ethics & Unfair Trade Practices
18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection
21 Chapter 1: Alaska P&C Insurance Regulation & Licensing
1.1 Alaska Division of Insurance 1.2 Alaska P&C Producer Licensing Requirements 1.3 Alaska Producer Duties and Responsibilities
22 Chapter 2: Alaska Property Insurance
2.1 Alaska Homeowners Insurance 2.2 Alaska Property Insurance Policy Provisions
23 Chapter 3: Alaska Auto & Casualty Insurance
3.1 Alaska Auto Insurance Requirements 3.2 Alaska Commercial Liability Insurance
24 Chapter 4: Alaska Ethics & Professional Conduct
4.1 Alaska Ethical Standards for Insurance Producers 4.2 Alaska Privacy Laws and Regulatory Compliance
11.1 CGL Limits of Insurance and Aggregates
Key Takeaways Explain This Topic AI
The ISO CGL (form CG 00 01) carries six separate limits: General Aggregate, Products-Completed Operations Aggregate, Each Occurrence, Personal & Advertising Injury, Damage to Premises Rented to You, and Medical Expense
The Each Occurrence limit caps a single occurrence and feeds into the General Aggregate; once an aggregate is exhausted the policy pays nothing more for that category until renewal
Products-completed operations losses erode the separate Products-Completed Operations Aggregate, NOT the General Aggregate
Damage to Premises Rented to You (formerly Fire Legal Liability) defaults to $100,000 and applies per premises; Medical Payments defaults to $5,000 per person and pays without regard to fault
The General Aggregate is the most the insurer pays for the sum of all covered claims (except products-completed operations) during the entire policy period
Last updated: June 2026
The Six CGL Limits
The Commercial General Liability Coverage Form ( ISO CG 00 01 , current 04 13 edition) is the backbone of the casualty exam. Section III, Limits of Insurance , lists six distinct dollar limits on the declarations page. Roughly 1 in 6 casualty questions tests how these six limits interact, so memorize the hierarchy below.
Limit What it caps Typical default
General Aggregate The most for ALL covered losses (except products-completed ops) in the policy period $2,000,000
- Products-Completed Operations Aggregate The most for all products-completed operations losses $2,000,000
- Each Occurrence The most for any one occurrence (BI + PD combined) $1,000,000
- Personal & Advertising Injury The most for any one person or organization $1,000,000
- Damage to Premises Rented to You Any one premises (fire damage to rented space) $100,000
- Medical Expense Any one person $5,000
- How the Limits Feed Each Other
The Each Occurrence limit is the most paid for bodily injury (BI) and property damage (PD) arising from a single occurrence. Every dollar paid under Each Occurrence also reduces the General Aggregate . When the General Aggregate is exhausted, the policy stops paying Coverage A and Coverage B losses (other than products-completed operations) for the rest of the term — no matter how many occurrences remain.
Quick Answer: The Each Occurrence limit caps one loss event; the General Aggregate caps the total of all such events over the whole policy period. Each Occurrence feeds the General Aggregate.
Personal & Advertising Injury (Coverage B) is subject to the Each Occurrence limit AND the General Aggregate , but it is NOT subject to the Each Occurrence limit — Coverage B has its own per-person/per-organization limit that erodes the General Aggregate directly.
Worked Numeric Example
A contractor has a CGL with $1,000,000 Each Occurrence and $2,000,000 General Aggregate. Three separate covered occurrences happen during the year:
Occurrence 1: $800,000 paid
Occurrence 2: $1,000,000 paid (capped at the Each Occurrence limit; the actual judgment was $1.3M, so the insured pays the extra $300,000)
Occurrence 3: claim of $400,000
After Occurrences 1 and 2, the General Aggregate has paid $1,800,000, leaving only $200,000 of the $2,000,000 aggregate. Occurrence 3's $400,000 claim is therefore paid only up to $200,000 , even though the $1,000,000 Each Occurrence limit is untouched. The insured absorbs the remaining $200,000. Trap: students assume Each Occurrence is the only ceiling — the General Aggregate is the harder cap once losses pile up.
The Two Aggregates Are Separate
The Products-Completed Operations Aggregate is a distinct bucket. Losses arising from the insured's products after they leave the premises, or from completed work away from the job site, erode this aggregate — never the General Aggregate. This separation protects a manufacturer or contractor: a string of premises-and-operations claims cannot wipe out the limit available for a later product-failure suit.
- General Aggregate: premises/operations, Coverage B, medical payments
- Products-Completed Operations Aggregate: defective products, faulty completed work
- Damage to Premises and Medical Payments
Damage to Premises Rented to You (historically Fire Legal Liability ) covers fire damage — and, for premises rented for 7 or fewer consecutive days, other perils — to property the insured rents. It defaults to $100,000 per premises and is a carve-out from the standard exclusion for damage to property in the insured's care, custody, or control.
Medical Expense (Coverage C) pays reasonable medical costs for bodily injury on the insured's premises or from its operations, without regard to fault (a goodwill coverage), up to $5,000 per person within typically one year of the accident. It does not apply to the insured, employees, or tenants.
Restoring or Splitting the Aggregate
Because one bad year can exhaust a shared General Aggregate, ISO offers endorsements that protect contractors with many simultaneous jobs:
CG 25 03 — Designated Construction Project(s) General Aggregate Limit: a separate General Aggregate applies to each named project, so a large loss on Project A leaves Project B's limit intact.
CG 25 04 — Designated Location(s) General Aggregate Limit: a separate aggregate per location for multi-site operations.
Without these, every covered claim across every job competes for the single $2,000,000 General Aggregate. Trap: the exam describes a contractor with five active sites and one catastrophic loss, then asks how to preserve limits for the other four — the answer is a per-project or per-location aggregate endorsement.
Defense Costs Are Outside the Limits
A defining feature of the standard CGL is that defense costs are paid in addition to the limits of insurance — they do not erode the Each Occurrence or General Aggregate amounts. The insurer's duty to defend continues until the applicable limit is exhausted by payment of judgments or settlements . This contrasts sharply with many professional liability and D&O forms, which use defense-within-limits ("eroding" or "wasting") policies where legal fees consume the limit.
Critical distinction: Standard CGL = defense OUTSIDE limits (defense is extra). Many claims-made E&O/D&O forms = defense INSIDE limits (defense reduces what is left for the judgment). This is a favorite distractor.
Splitting Bodily Injury and Property Damage
The CGL Each Occurrence limit is a combined single limit (CSL) — one dollar amount applies to bodily injury and property damage together for a single occurrence. This differs from a split limit common on personal auto (e.g., 100/300/50), where separate caps apply per person, per accident, and to property damage. Knowing the CGL uses a combined single limit, not split limits, is a frequently tested point because students carry the auto split-limit habit into the casualty section incorrectly.