Under a liability policy, the maximum payment for injury to any one person is known as the

Under a liability policy, the maximum payment for injury to any one person is known as the

• A. per occurrence limit
• B. each person limit
• C. aggregate limit
• D. split limit

Answer: (B)

The main idea here is how liability policy limits are structured. The amount the insurer will pay for injuries to a single person is the per-person limit. This value represents the maximum payable to any one claimant in a single claim or occurrence, regardless of how many other people are injured. In policies that use split limits, the per-person limit is typically shown as the first number (for example, in a 100/300/50 notation, the 100 is the per-person limit). The per-occurrence limit is the maximum the insurer will pay for all injuries arising from one occurrence, and the aggregate limit is the total the insurer will pay for all injuries during the policy period. The per-occurrence limit and aggregate limit describe other payment caps, while split limit refers to how those amounts are arranged, not the single-person cap itself. So the statement that the maximum payment for injury to any one person is the per-person (or each person) limit is the correct concept.

The main idea here is how liability policy limits are structured. The amount the insurer will pay for injuries to a single person is the per-person limit. This value represents the maximum payable to any one claimant in a single claim or occurrence, regardless of how many other people are injured.

In policies that use split limits, the per-person limit is typically shown as the first number (for example, in a 100/300/50 notation, the 100 is the per-person limit). The per-occurrence limit is the maximum the insurer will pay for all injuries arising from one occurrence, and the aggregate limit is the total the insurer will pay for all injuries during the policy period. The per-occurrence limit and aggregate limit describe other payment caps, while split limit refers to how those amounts are arranged, not the single-person cap itself.

So the statement that the maximum payment for injury to any one person is the per-person (or each person) limit is the correct concept.