In single limit liability, liability coverage provides one limit for which categories?

In single limit liability, liability coverage provides one limit for which categories?

• A. Bodily injury excluding passengers
• B. Property damage
• C. Both Bodily injury excluding passengers and Property damage
• D. Medical payments

Answer: (C)

Single limit liability means there is one dollar amount that applies to the total liability from an accident, covering both bodily injury and property damage. There’s not a separate limit for each category—the same limit can be used for injuries to people and for damage to property, up to the single cap. For example, with a $500,000 single limit, if injuries cost $350,000 and property damage is $200,000, the total $550,000 would hit the $500,000 limit; the insurer pays up to that limit and the remaining amount would be the insured’s responsibility (subject to any other coverages). Medical payments, by contrast, are a separate coverage and not part of the liability limit.

Single limit liability means there is one dollar amount that applies to the total liability from an accident, covering both bodily injury and property damage. There’s not a separate limit for each category—the same limit can be used for injuries to people and for damage to property, up to the single cap. For example, with a $500,000 single limit, if injuries cost $350,000 and property damage is $200,000, the total $550,000 would hit the $500,000 limit; the insurer pays up to that limit and the remaining amount would be the insured’s responsibility (subject to any other coverages). Medical payments, by contrast, are a separate coverage and not part of the liability limit.