What is the liability limit represented by Kelly’s insurance?

The liability limit represented by Kelly’s insurance reflects the coverage amounts available for bodily injury and property damage in the event of an accident. In the correct answer, the numbers are commonly interpreted as follows:

• The first number indicates the maximum amount the insurance will pay for bodily injury per individual involved in an accident.
• The second number indicates the maximum amount the insurance will pay for bodily injury per accident, regardless of the number of individuals involved.

• The third number specifies the maximum amount the policy will pay for property damage resulting from an accident.

Choosing the correct limits provides an understanding of how much financial protection Kelly has in the event of an accident. For instance, with a liability limit of 50/100/50, Kelly's policy would pay up to $50,000 for any single person injured in an accident, up to $100,000 total for all bodily injuries from a single accident, and up to $50,000 for any property damage resulting from that accident. This structure is efficient for protecting assets against claims made due to the insured's vehicular operation.

Understanding these limits is essential for both insurance consumers and adjusters, as it allows for clearer communication about coverage and limits, ensuring that all parties are aware of the potential financial responsibilities