P's liability policy has the following limits: $50,000 per person, $250,000 per occurrence, and $400,000 aggregate. If P suffers another loss of $250,000 during the same policy period after already paying out $250,000, how much will the policy pay?

In this scenario, the liability policy has specific limits that dictate how much will be paid out in case of claims. The policy's limits are defined per person for individual claims, per occurrence for multiple claims in a single event, and an aggregate limit which caps the total amount payable during the policy period.

Initially, P's policy paid out $250,000 for a previous occurrence. Since the occurrence limit is also $250,000, that maximum for a single event has been reached. However, the new loss of $250,000 occurring during the same policy period is handled differently as it is treated under the overall aggregate limit.

The aggregate limit of the policy is $400,000, which encompasses all claims made during the policy period. After already paying $250,000 from the aggregate for the first claim, there is still $150,000 available before reaching the total aggregate limit. Thus, when P faces another loss of $250,000, the policy will only cover the remaining amount available under the aggregate limit.

Therefore, the policy will pay out an additional $150,000 to cover part of the new claim, but the full claim cannot be paid since the limit has been reached. The remaining funds under the aggregate after the initial