What does a per person liability limit specify?

• A. The maximum amount the insurer will pay to any one injured person
• B. The maximum amount the insurer will pay for all claims in a year
• C. The maximum payout for all damages per occurrence
• D. The maximum payment to the insured

Answer: (A)

Liability limits are defined in two parts: per person and per accident. The per person limit is the maximum the insurer will pay to any one injured person. This means, in a crash with multiple injured individuals, each person can receive up to that per-person amount, but the total paid for all injuries in that accident is capped by the per-accident limit. For example, with a 25/50 bodily injury limit, the insurer will pay up to $25,000 for each injured person, and up to $50,000 total for all injuries in that one accident. Property damage has its own separate per-accident limit and isn’t tied to the per-person bodily injury amount.