Which term applies when all damages from one accident are covered under a single limit for bodily injury and property damage?

Which term applies when all damages from one accident are covered under a single limit for bodily injury and property damage?

• A. Combined Single
• B. Pro Rata Liability
• C. Nonconcurrence
• D. Per Occurrence

Answer: (A)

The concept here is how liability limits apply to a single accident. A combined single limit means there is one total dollar amount that covers all damages from that accident, for both bodily injury and property damage. There aren’t separate caps for injuries and for property damage—the money is pooled into one limit that applies to the entire event. This differs from split limits, where body injury per person, body injury per accident, and property damage per accident each have their own separate maximums. With a combined single limit, you don’t have to worry about how much is allocated to BI vs PD—the single limit covers everything up to that amount. For example, with a CSL of 300,000, all BI and PD from that accident are paid up to 300,000 in total. If BI costs 250,000 and PD costs 60,000, the total is 310,000, so the policy pays 300,000 and the insured would be responsible for the remaining 10,000 (depending on policy terms). If the total is 280,000, it’s fully covered. So the term that fits the description is the combined single limit.

The concept here is how liability limits apply to a single accident. A combined single limit means there is one total dollar amount that covers all damages from that accident, for both bodily injury and property damage. There aren’t separate caps for injuries and for property damage—the money is pooled into one limit that applies to the entire event.

This differs from split limits, where body injury per person, body injury per accident, and property damage per accident each have their own separate maximums. With a combined single limit, you don’t have to worry about how much is allocated to BI vs PD—the single limit covers everything up to that amount.

For example, with a CSL of 300,000, all BI and PD from that accident are paid up to 300,000 in total. If BI costs 250,000 and PD costs 60,000, the total is 310,000, so the policy pays 300,000 and the insured would be responsible for the remaining 10,000 (depending on policy terms). If the total is 280,000, it’s fully covered.

So the term that fits the description is the combined single limit.