The clause where the payment is divided between bodily injury and property damage is known as?

The clause where the payment is divided between bodily injury and property damage is known as?

• A. Split Liability
• B. Pro Rata Liability
• C. Primary and Excess
• D. Composite

Answer: (A)

Split liability describes the way auto liability limits are separated into distinct payouts for different types of damage. With this arrangement, the policy sets separate limits for bodily injury and for property damage, usually presented as bodily injury per person, bodily injury per accident, and property damage per accident. When a claim occurs, payments for injuries come from the bodily injury limits and payments for property damage come from the property damage limit. This contrasts with pro rata liability (sharing a loss across multiple policies or insureds), primary and excess (layering of coverage), or composite/combined single limits (one overall limit for all liability). So the clause that specifies how the payment is divided between bodily injury and property damage is the split liability concept.

Split liability describes the way auto liability limits are separated into distinct payouts for different types of damage. With this arrangement, the policy sets separate limits for bodily injury and for property damage, usually presented as bodily injury per person, bodily injury per accident, and property damage per accident. When a claim occurs, payments for injuries come from the bodily injury limits and payments for property damage come from the property damage limit. This contrasts with pro rata liability (sharing a loss across multiple policies or insureds), primary and excess (layering of coverage), or composite/combined single limits (one overall limit for all liability). So the clause that specifies how the payment is divided between bodily injury and property damage is the split liability concept.