Los Angeles Claims Adjuster Property and Casualty Practice Exam 2025 - Free Claims Adjuster Exam Questions and Study Guide

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What is the purpose of the Per Occurrence Limit in CGL?

To limit claims for advertising injuries

To set a maximum payout for all claims in one policy period

To restrict damages for bodily injury in a single incident

The Per Occurrence Limit in a Commercial General Liability (CGL) policy is designed to restrict the amount the insurer will pay for damages resulting from a single incident or event. This means that if multiple claims arise from one particular occurrence, the insurance company will only pay up to a specified limit for that occurrence. This limit is crucial as it helps insurance providers manage risk and potential losses associated with individual incidents, ensuring they can maintain financial stability. The concept is important for both insurers and policyholders, as it helps define the boundaries of coverage and can influence the overall cost of the insurance policy. The other choices focus on different aspects of liability coverage and do not accurately describe the role of the Per Occurrence Limit.

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To cover all medical expenses incurred in a policy year

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