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Pravalt Construction Company (PCC) is insured under a standard commercial general liability (CGL) policy with a $1 million each occurrence limit and a $2 million
Pravalt Construction Company (PCC) is insured under a standard commercial general liability (CGL) policy with a $1 million each occurrence limit and a $2 million general aggregate limit. The CGL insurer represents PCC in a trial, and PCC is found liable for an $850,000 judgment. The defense costs involved in defending the claim were $250,000. Assuming no other claims have been paid during the policy period, which one of the following represents the amount that the CGL insurer will pay for the claim? Available answer options Select only one option A The $250,000 in defense costs plus $750,000 of the judgment B The $850,000 judgment plus the $250,000 in defense costs C The $850,000 judgment plus $150,000 of the defense costs D The $850,000 judgment only
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