California Property & Casualty Broker-AgentCasualty InsuranceEasy
A client in California is purchasing a Personal Auto Policy. They are comparing options for liability coverage. They want a single maximum amount that the insurer will pay for all bodily injury and property damage resulting from any single accident, regardless of the number of people injured or properties damaged. Which type of liability limit best fits this description?
- ASplit Limits
- BPer Person Limit
- CAggregate Limit
- DCombined Single Limit (CSL)
Show answer & explanationAnswer & explanation
Correct answer: D. Combined Single Limit (CSL)
A Combined Single Limit (CSL) policy provides a single maximum dollar amount that the insurer will pay for all damages, including bodily injury and property damage, resulting from a single accident. This contrasts with split limits, which have separate caps for bodily injury per person, bodily injury per accident, and property damage.
Why the other options are wrong
- A. Split Limits provide separate maximums for bodily injury per person, per accident, and property damage.
- B. Per Person Limit is a component of split limits, setting a maximum for one person's bodily injury.
- C. Aggregate Limit is typically found in commercial policies, representing the total maximum an insurer will pay over a policy period, not per accident.
Combined Single Limit (CSL)
A Combined Single Limit (CSL) in an auto insurance policy specifies one maximum dollar amount that the insurer will pay for all bodily injury and property damage liability resulting from a single accident.
- No separate limits for bodily injury per person, bodily injury per accident, or property damage.
- Provides flexibility in how the total limit is applied across different losses in an accident.
- Often preferred for its simplicity and broader potential coverage in complex accidents.
Memory trick: Limits: Split (Separate) or Combined (One Pot)!