After Andrea’s injury, what is BB Mart's general aggregate limit after the claim is paid?

Prepare for the Florida Certified Insurance Representative Exam. Use multiple choice questions and detailed explanations to enhance your study sessions. Improve your chances of success!

To determine the general aggregate limit after Andrea's injury claim is paid, it is vital to understand how an insurance policy's general aggregate limit operates. The general aggregate limit applies to the total amount an insurer will pay for all claims made during a specific policy period, typically expressed as a total limit.

Given that the general aggregate limit is usually set at a specific high amount, such as $1,000,000, any claim paid out would reduce the remaining available limit. If, for example, Andrea's claim was for $300,000, the general aggregate limit would then reflect the amount remaining after that payout.

In this case, if the original limit were indeed $1,000,000 and the claim paid was $300,000, then the remaining general aggregate limit would be $700,000.

Thus, after Andrea’s injury and the payment of the claim, BB Mart's general aggregate limit would indeed be $700,000, which aligns with the answer provided. The calculation reflects the function of the general aggregate limit in insurance policies, illustrating how it decreases as claims are paid out during the policy period.

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