Under a commercial General Liability policy, which statement is TRUE?

• A. Personal injury refers to Bodily Injury
• B. Aggregate refers to the maximum total amount that will be paid out during a policy year
• C. There is no limitation on how much can be paid out under this coverage
• D. Each occurrence is the maximum that will be paid out for all occurrences.

Answer: (B)

The key idea here is how limits work in a Commercial General Liability policy. A CGL policy sets a limit for each single event (per-occurrence) and an overall limit for all claims that arise in the policy period (the aggregate). The aggregate is the maximum total amount the insurer will pay for all covered claims during the policy year. That makes the statement about aggregate true.

Why the other statements don’t fit: personal injury is a separate coverage area from Bodily Injury; it includes things like libel, slander, false arrest, and similar offenses, not physical harm. So equating personal injury with Bodily Injury isn’t correct. There is indeed a limit to how much can be paid—policies have both per-occurrence and aggregate limits, so the idea there’s no limitation is false. Finally, the maximum paid for all occurrences is not set per occurrence; the per-occurrence limit applies to each individual event, while the aggregate limit caps total payments for the policy period, so saying each occurrence is the maximum for all occurrences isn’t accurate.