Los Angeles Claims Adjuster Property and Casualty Exam 2025 – 400 Free Practice Questions to Pass the Exam

The term that describes a maximum payable amount for each individual injured in an occurrence under split limits is known as the "each person limit." In the context of liability insurance, split limits refer to different coverage amounts for bodily injury and property damage, where coverage for bodily injury is further divided into limits for each individual and for total incidents.

The "each person limit" specifically sets a cap on how much an insurance policy will pay for injuries suffered by a single individual in a single incident. This is crucial for ensuring that claims do not exceed designated amounts, providing clarity and protection for both the insurer and the insured. For example, if an insurance policy states a bodily injury limit of $100,000/$300,000, the first figure represents the maximum payout for each injured individual, while the second figure indicates the maximum for all injuries combined from a single incident.

Understanding the concept of "each person limit" helps clarify how insurance policies allocate compensation amounts based on the number of injured parties in an accident and provides insight into the structure of liability coverage.