In a split limits liability coverage, what does Limit 1 typically represent?

In split limits liability coverage, Limit 1 typically represents the maximum payout for bodily injury for each person involved in an accident. This type of coverage is designed to provide a clear distinction between the amount that can be claimed for individual bodily injury versus the overall coverage for property damage or multiple bodily injury claims.

Under this framework, if a policy has split limits such as 100/300/50, it indicates that the first figure (100) covers up to $100,000 for bodily injury per person, while the second figure would cover a total of $300,000 for bodily injury per accident, and the third figure would pertain to property damage coverage. This structure is particularly important because it establishes limitations on claims based on the nature of injuries and the number of claimants, thus providing sufficient protection for both the insured and the injured parties.

Understanding split limits is crucial for adjusters when evaluating claims and enforcing the policy limits accurately.