In a split limits policy, which two limits are typically used?

In a split limits policy, which two limits are typically used?

• A. Per occurrence for bodily injury and per person for bodily injury
• B. Per occurrence for property damage and per person for bodily injury
• C. Per project for property damage and per location for bodily injury
• D. Aggregate limit for all claims

Answer: (A)

In a split limits liability policy, the two limits describe how much the insurer will pay for bodily injury claims from a single incident. One limit is the amount the policy will pay per person who is bodily injured, and the other limit is the amount the policy will pay for all bodily injury claims arising from that one occurrence. This setup creates two separate BI caps: per person and per occurrence. Property damage has its own limit, and the concept of an aggregate limit applies over the policy period rather than to a single incident, so the two BI limits described are the ones that define split limits.

In a split limits liability policy, the two limits describe how much the insurer will pay for bodily injury claims from a single incident. One limit is the amount the policy will pay per person who is bodily injured, and the other limit is the amount the policy will pay for all bodily injury claims arising from that one occurrence. This setup creates two separate BI caps: per person and per occurrence. Property damage has its own limit, and the concept of an aggregate limit applies over the policy period rather than to a single incident, so the two BI limits described are the ones that define split limits.