If Ernie holds a BOP with a Selected Per Occurrence limit of $300,000, what will his General Aggregate limit be?

In a Businessowners Policy (BOP), the General Aggregate limit is typically set at two times the Selected Per Occurrence limit. This underwriting practice is designed to provide broader coverage across multiple claims that an insured might face within a policy term.

In this case, Ernie’s Selected Per Occurrence limit is set at $300,000. By applying the common formula used in BOP structures, we can determine the General Aggregate limit by multiplying the Per Occurrence limit by two.

Calculating this, we multiply $300,000 by 2, which results in a General Aggregate limit of $600,000. This means that while each individual occurrence is covered up to $300,000, the total coverage for all occurrences combined during the policy period cannot exceed $600,000.

Understanding this relationship is essential for anyone preparing for the Mississippi Adjuster License Practice Exam or working in the insurance field, as it helps clarify how coverage limits interact within commercial insurance policies.