Los Angeles Claims Adjuster Property and Causality Practice Exam

What type of limit pays up to a maximum amount for bodily injury and property damage in a single occurrence?

1. Aggregate limit

2. Split limits

3. Single limit

4. Supplementary payments

The correct answer is: Single limit

The correct answer is a single limit, which refers to a liability insurance policy provision that provides a single maximum payout for both bodily injury and property damage arising from a single occurrence. This means that in the event of an incident, the insurer will cover all claims for bodily injury and property damage up to that specified limit, consolidating the limits for both types of coverage into one total amount. This structure allows for flexibility in allocating the funds to either type of claim depending on the situation. In contrast, aggregate limits cap the total amount an insurer will pay for all claims during a specific policy period, rather than applying to individual occurrences, which is not what is being asked in the question. Split limits are structured to provide separate maximums for bodily injury and property damage, thus requiring a distinction between the two claims rather than treating them as a single total. Supplementary payments refer to additional benefits that cover certain expenses related to a claim beyond the standard limit, such as legal fees or costs incurred during the defense, rather than directly addressing limits on bodily injury and property damage in a single occurrence.