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
- How much would have been paid under the specific excess policy?
- 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?
