California Property & Casualty Broker-AgentCasualty InsuranceMedium
A construction company owner is reviewing their Commercial Auto Policy. The policy specifies a 'Combined Single Limit' of $1,000,000. Which of the following best describes what this limit means?
- AThe maximum amount the policy will pay for property damage claims in an accident, up to $1,000,000.
- BThe total maximum amount the policy will pay for all bodily injury and property damage claims resulting from a single accident, regardless of the number of claimants.
- CThe maximum amount the policy will pay for all bodily injury claims in an accident, and a separate $1,000,000 limit for all property damage claims.
- DThe maximum amount the policy will pay for any single person's injuries in an accident, up to $1,000,000.
Show answer & explanationAnswer & explanation
Correct answer: B. The total maximum amount the policy will pay for all bodily injury and property damage claims resulting from a single accident, regardless of the number of claimants.
A Combined Single Limit (CSL) in a Commercial Auto Policy means that the specified amount is the maximum the insurer will pay for all bodily injury and property damage arising from a single occurrence, without separate sub-limits for each type of damage or per person.
Why the other options are wrong
- A. This describes a 'per accident property damage' limit, which is part of a split limit, not a CSL.
- C. This describes a split limit, where bodily injury and property damage have separate maximums, which is not a CSL.
- D. This describes a 'per person' limit, which is part of a split limit, not a CSL.
Combined Single Limit (CSL)
A single dollar limit of liability coverage in an auto insurance policy that applies to both bodily injury and property damage claims arising from a single accident, rather than having separate limits.
- One maximum amount for all damages.
- Covers both bodily injury and property damage.
- Applies per accident/occurrence.
Memory trick: CSL combines all claims in one big, single sum.