As always, this is not a court room definition, but intended to help you learn what information goes where on the ACORD form.
Auto policy liability limits are either Combined Single Limits or Split Limits.
The split limits refers to the Bodily Injury and Property Damage having separate, specific limits. So, you will never put limits in the Combined Single Limits field and also put limits in any of the other fields for Automobile Liability.
Combined Single Limits is often abbreviated as CSL.
Bodily Injury and Property Damage are often abbreviated as BI and PD respectively.
Bodily Injury will have a person limit, such as $100,000 and an aggregate limit, such as $300,000. These combinations differ from state to state.
Bodily Injury pays for bodily harm the insured is legally responsible for to others as a result of the operation of a motor vehicle covered under this specific policy. The per person limit is the most the insurance carrier will pay for any one person. The Aggregate limit is the most the insurance carrier will pay regardless of how many people are injured.
Property Damage coverage pays for the damage to the property of others the insured is legally responsible for as a result of the operation of a vehicle insured under this specific policy. The coverage is shown as applying on a per accident basis. The definition of an accident is not the same as an occurrence. It is possible for a given occurrence to consist of many separate accidents. I will get into that in a later post.
I hope this is helpful to you.
Please share with anyone you wish.
We all learn things for the first time at some point. Tomorrow I will cover the Umbrella and Excess sections of the ACORD 25.
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