A contractor has a CGL policy that provides $100,000 per occurrence limit. The contractor is trying to determine what type of following-form excess liability policy to purchase as follows:

• specific excess policy with a $100,000 retention and a $1,000,000 maximum limit
• aggregate excess liability policy with a $100,000 aggregate liability policy with a $100,000 aggregate retention and a $1,000,000 maximum limit

During the past year, the contractor has had the following losses:

• $25,000
• $75,000
• $90,000
• $35,000

1. How much would have been paid under the specific excess policy?
2. How much would have been paid under the aggregate excess policy?

The agent also recommends a combination aggregate and specific excess policy with the following limits:

• Specific excess: $100,000 per occurrence retention and a $1,000,000 maximum limit Aggregate excess: $200,000 aggregate retention and a $1,000,000 maximum limit Based on the loss history above, how much would have been paid on this combination policy?

Answer rating: 100% (QA)

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