8 Questions
What does a split limit liability policy divide liability coverage into?
Bodily injury liability per person, bodily injury liability per accident, property damage liability coverage per accident
What does a per-accident limit refer to in an insurance policy?
Maximum amount the insurance will pay out per accident where you're at-fault
What does a combined single limit (CSL) insurance policy provision limit?
All claim components to a single dollar amount
What is the purpose of an aggregate limit in an insurance policy?
To specify how much the insurance company will pay over the policy's duration
What is the purpose of coinsurance in insurance contracts?
Encouraging policyholders to have adequate coverage
How is the settlement amount calculated under a coinsurance clause?
(Actual insured amount/Required insured amount) x Amount of loss
What is a partial loss in the context of property insurance?
When part of an insured property is damaged, but it still functions
What is a total loss in the context of property insurance?
When something is damaged beyond repair or use
Test your knowledge of insurance liability limits with this quiz. Learn about per claim limit, aggregate limit, and per accident limit to understand how much coverage an insurance policy provides for damages.
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