The limits of liability on an insurance policy are $1,000,000 for each claim, $4,000,000 aggregate. A nurse is charged in a serious situation in which five separate lawsuits have been filed. What is the most the insurance company will likely pay in this situation?

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Quizplus · Accepted Answer

Rationale 1: $4,000,000 represents the most the insurance company will pay during a given policy period.
Rationale 2: There is no indication that the insurance company will divide the $1,000,000 by 5 when considering how much to pay.
Rationale 3: The limit of liability for each claim is $1,000,000 and that is likely all the insurance company will pay since each of the 5 suits came out of the same situation.
Rationale 4: It is unlikely that the company will pay $1,000,000 for each claim since they all arose from the same incident.

The Limits of Liability on an Insurance Policy Are $1,000,000