Study guide
11.1 CGL Limits of Insurance and Aggregates
Arkansas Property & Casualty Insurance State
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1 Standalone Coverage Map
Standalone Coverage Map
2 Introduction: Arkansas Property & Casualty Insurance Exam Overview
Arkansas 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
4.1 Homeowners Forms HO-2 through HO-8 and Eligibility 4.2 Section I Coverages A-D and Additional Coverages 4.3 Section I Perils Insured Against and Exclusions 4.4 Replacement Cost vs. ACV and Loss Settlement in Homeowners
7 National Portion: Homeowners Policies - Section II & Endorsements
5.1 Section II Coverages E (Liability) and F (Medical Payments) 5.2 Homeowners Conditions and Duties After Loss 5.3 Common Homeowners Endorsements (scheduled property, water backup, ordinance or law)
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: Arkansas P&C Insurance Regulation & Licensing
1.1 Arkansas Insurance Department 1.2 Arkansas P&C Producer Licensing Requirements 1.3 Arkansas Producer Responsibilities
22 Chapter 2: Arkansas Property Insurance
2.1 Arkansas Homeowners Insurance 2.2 Arkansas Commercial Property Insurance
23 Chapter 3: Arkansas Casualty & Auto Insurance
3.1 Arkansas Auto Insurance Requirements 3.2 Arkansas Liability Insurance 3.3 Arkansas Workers' Compensation Insurance
24 Chapter 4: Arkansas Ethics & Professional Conduct
4.1 Ethical Practices and Consumer Protection
11.1 CGL Limits of Insurance and Aggregates
Key Takeaways Explain This Topic AI
The ISO CGL (CG 00 01) has six limits: General Aggregate, Products-Completed Operations Aggregate, Personal & Advertising Injury, Each Occurrence, Damage to Premises Rented to You, and Medical Expense.
Standard illustrative amounts: $2M General Aggregate, $2M PCOH Aggregate, $1M Personal/Advertising, $1M Each Occurrence, $100K Damage to Premises Rented, $5K Medical Expense per person.
The General Aggregate and Products-Completed Operations Aggregate are separate pools - exhausting one never touches the other.
Each Occurrence caps a single loss; the General Aggregate caps the cumulative period total, and Coverage B and C payments erode the General Aggregate.
Defense costs under the CGL are supplementary payments paid in addition to the limits - unlike wasting/defense-within-limits professional-liability forms.
Last updated: June 2026
The Six Limits of the ISO CGL
The ISO Commercial General Liability Coverage Form ( CG 00 01 , current 04 13 edition) carries six separate limits of insurance , listed in Section III - Limits of Insurance. Knowing how each limit interacts with the two aggregates is one of the most heavily tested topics on the national portion. A candidate who can recite the limits in order, and explain which pool each loss erodes, will answer most CGL limit questions correctly.
The limits below are illustrative standard amounts used on the exam; an actual policy lists whatever amounts the insured purchases on the Declarations.
- Limit (CG 00 01) Illustrative amount Applies to
- General Aggregate $2,000,000 Sum of all Coverage A (premises/ops), B, and C payments
- Products-Completed Operations Aggregate $2,000,000 All products-completed operations hazard (PCOH) losses
- Personal & Advertising Injury $1,000,000 Most for one person or organization (Coverage B)
- Each Occurrence $1,000,000 All BI + PD from one occurrence (Coverage A)
- Damage to Premises Rented to You $100,000 Damage to premises rented to / occupied by insured
- Medical Expense $5,000 Per person (Coverage C)
How the Each-Occurrence Limit Caps a Single Loss
The Each Occurrence limit is the most the insurer pays for the combined bodily injury (BI) and property damage (PD) arising out of a single occurrence - regardless of the number of persons injured, the number of claims or suits brought, or the number of insureds involved. This is the per-loss ceiling that feeds into the aggregate.
Worked example. A single warehouse fire causes $500,000 of third-party PD and $750,000 of BI, totaling $1,250,000. With a $1,000,000 Each Occurrence limit, the insurer pays $1,000,000 and the insured absorbs the remaining $250,000 . The full $1,000,000 paid then reduces the General Aggregate, leaving $1,000,000 of General Aggregate for the rest of the policy period.
Two Separate Aggregate Pools
The General Aggregate and the Products-Completed Operations Aggregate are independent pools - exhausting one does not touch the other. This separation is a frequent trap.
The General Aggregate caps total payments for premises-and-operations BI/PD (Coverage A), all Coverage B personal & advertising injury, and all Coverage C medical payments.
The Products-Completed Operations Aggregate (PCOH) caps losses arising after the insured's product has left its possession or its work is completed - for example, a defective component that fails at the customer's site.
Trap: Damage to Premises Rented to You and Medical Expense are sublimits within - and erode - the Each Occurrence and General Aggregate. They are not separate buckets on top of the occurrence limit.
Worked Aggregate-Erosion Sequence
Assume General Aggregate $2,000,000 / Each Occurrence $1,000,000. Three premises-operations occurrences hit in one policy year:
Occurrence 1 pays $1,000,000 (capped at Each Occurrence). General Aggregate remaining: $1,000,000 .
Occurrence 2 pays $700,000. General Aggregate remaining: $300,000 .
Occurrence 3 is a $1,000,000 loss but only $300,000 is left in the General Aggregate, so the insurer pays $300,000 and the insured retains $700,000.
Note that the Each Occurrence limit caps each loss individually , while the General Aggregate caps the cumulative total for the period. A products-completed operations claim in the same year would still draw on its own $2,000,000 PCOH pool, untouched by the three premises losses above.
Defense Costs Are Outside the Limits
Under CG 00 01, the insurer's duty to defend is a supplementary payment - defense costs are paid in addition to the limits of insurance and do not erode them. The duty to defend ends only when the applicable limit has been exhausted by the payment of judgments or settlements . This contrasts with many professional-liability (E&O / D&O) forms, where defense costs are inside the limit ('eroding,' 'wasting,' or 'defense-within-limits'). The exam loves to contrast the CGL's outside-the-limits defense with a wasting professional-liability tower.
Supplementary Payments Beyond the Limits
Beyond defense, the CGL pays several supplementary payments that do not reduce the limits, including:
All costs taxed against the insured in a suit the insurer defends.
Up to $250 for bail bonds required because of a covered accident or traffic-law violation.
The cost of appeal bonds and bonds to release attached property (the insurer is not obligated to furnish the bond, only to pay the premium).
Reasonable expenses the insured incurs at the insurer's request, including up to $250 per day for lost earnings.
Pre-judgment interest on the amount of any judgment the insurer pays, plus post-judgment interest on the full judgment until the insurer pays its limit.
Knowing the $250 bail-bond cap and the $250-per-day loss-of-earnings figure is a recurring exam detail.
How the Each-Occurrence Limit Interacts With Sublimits
The Damage to Premises Rented to You limit and the Medical Expense limit are carved out of the Each Occurrence limit, not added on top of it. If a fire damages rented premises ($90,000) and also injures a visitor requiring $4,000 of immediate medical treatment, the insurer applies the $100,000 Damage to Premises limit and the $5,000 Medical Expense limit respectively, but the total for that occurrence can never exceed the Each Occurrence limit. The General Aggregate then absorbs the cumulative effect. This nesting - sublimit inside occurrence limit inside aggregate - is exactly what tricky multi-part questions test.