The policy's payment cap for a single occurrence is described as?

The policy's payment cap for a single occurrence is described as?

• A. Per Occurrence (Accident)
• B. Aggregate
• C. Per Person
• D. Split Liability

Answer: (A)

The payment cap for a single event is the per occurrence limit. This sets the maximum the insurer will pay for all damages resulting from one incident or accident, no matter how many claims or injured parties arise from that single event. It’s different from an aggregate limit, which caps total payments for all claims during the policy period; a per person limit, which caps what one individual can recover in bodily injury; and split liability, which uses separate limits for different coverages or insureds.

The payment cap for a single event is the per occurrence limit. This sets the maximum the insurer will pay for all damages resulting from one incident or accident, no matter how many claims or injured parties arise from that single event. It’s different from an aggregate limit, which caps total payments for all claims during the policy period; a per person limit, which caps what one individual can recover in bodily injury; and split liability, which uses separate limits for different coverages or insureds.