What is the 'severability of insurance' concept as applied to Section II?

• A. Liability applies to all insured as a single aggregate
• B. Liability coverage applies individually to each insured
• C. Insurance is shared proportionally among insureds
• D. Only the oldest insured has coverage

Answer: (B)

Severability of insurance means that liability coverage is provided separately for each named insured. Under Section II, if multiple people are insured, each person has their own coverage limit and defense rights, and one insured’s claim does not exhaust or reduce another’s coverage. For example, if two people are insured and one person's actions cause a claim, that claim is evaluated against that person’s own coverage up to their own limit, rather than using a single shared limit for all insureds. The idea is that coverage applies individually to each insured.

The other concepts don’t fit: the liability isn’t treated as a single aggregate for all insureds, it isn’t shared proportionally among insureds, and the oldest insured having coverage is not the rule.