Minnesota Real Estate Exam Practice Question
In a commercial general liability policy, which factor restricts the amount payable in the event of a loss?
Correct Answer: B
Rationale: In a commercial general liability policy, the limit on the policy directly determines the maximum amount that can be paid out for any single loss or occurrence. This cap ensures that the insurer's exposure is controlled.
Option A, the number of insureds, does not inherently restrict payouts, as the limit applies regardless of how many individuals are covered. Option C, the number of claims made, may influence the total claims but does not change the payout limit per claim. Option D, the number of suits brought, similarly does not affect the underlying policy limit; it merely reflects the legal actions taken against the insured.
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