What is the maximum amount that ABC's insurer will pay for Jerome's injuries under the per occurrence limit?

To determine the maximum amount that ABC's insurer will pay for Jerome's injuries under the per occurrence limit, it is essential to understand the concept of a per occurrence limit in insurance policies. The per occurrence limit establishes the maximum payout an insurer will provide for each individual claim or incident, regardless of the number of claimants involved.

In this case, if the per occurrence limit is set at $250,000, it means that for each incident resulting in claims, such as Jerome's injuries, the insurer is obligated to cover up to that amount. This limit is crucial in risk assessment and underwriting, as it defines the insurer’s liability and exposure for each separate incident.

The other proposed amounts (such as $500,000, $400,000, and $750,000) do not adhere to the stated per occurrence limit. They represent figures that would be beyond the established maximum payment threshold for a single claim, further validating why the correct answer is $250,000. Understanding this limit helps both insurers and policyholders in addressing potential claims efficiently within the defined parameters of the insurance contract.