If Jerome was awarded $400,000 for his injuries, what is the maximum his CGL insurer will pay given a per occurrence limit of $250,000?

In this scenario, the correct answer is that the maximum amount the Commercial General Liability (CGL) insurer will pay is $250,000. This is based on the policy's per occurrence limit, which specifies the maximum payout for a single incident.

Even though Jerome was awarded $400,000 for his injuries, the terms of the CGL policy govern the insurer’s liability. The per occurrence limit establishes a cap on how much the insurer is obligated to pay for any one claim, regardless of the total amount granted to the insured.

In this case, since Jerome's award exceeds the per occurrence limit, the insurer will only be responsible for the maximum limit of $250,000. This limit is a common feature of liability insurance policies, designed to protect insurers from excessively high claims.