1. A contractor has a CGL policy and an umbrella policy. Both policies are occurrence forms. The CGL policy has an occurrence limit of $1 million and an aggregate limit of $2 million.The umbrella policy has an occurrence limit of $2 million and a general aggregate limit of $5 million. The contractor has a covered loss of $1.5 million.

-How much will be paid under each policy for this loss?

-During the same policy period, the contractor has 4 additional losses as follows:

$750,000

$2,000,000

$1,750,000

$5,000,000

• How much would each of the policies pay for these losses?
• What is the impact of each loss on the aggregate limits?

How much of the loss does the insured retain, if any?