In a personal automobile policy (PAP) with limits of 200/500/50, which statement about liability coverage is correct?

In a personal automobile policy (PAP) with limits of 200/500/50, which statement about liability coverage is correct?

• A. Ronnie has liability coverage of up to $200,000 for bodily injury to one person.
• B. Ronnie's lifetime coverage under the policy is $750,000.
• C. Ronnie has $500,000 of uninsured motorist coverage.
• D. Ronnie has $50,000 in medical payments coverage.

Answer: (A)

The correct answer indicates that Ronnie has liability coverage of up to $200,000 for bodily injury to one person. In a personal automobile policy, the limits are typically expressed in the format of bodily injury liability per person, total bodily injury liability per accident, and property damage liability. In this context, the first number (200) refers to the maximum amount the insurance will pay for bodily injury to a single individual in an accident. This means that if Ronnie were to cause an accident resulting in bodily injury to one person, the insurance would cover up to $200,000 of that person's medical expenses, lost wages, and other related costs. The second number in the limit (500) represents the total payout for bodily injury for all individuals involved in a single accident, while the third number (50) pertains to property damage liability. Understanding this structure is key for recognizing how liability coverage works within a personal automobile policy.

The correct answer indicates that Ronnie has liability coverage of up to $200,000 for bodily injury to one person. In a personal automobile policy, the limits are typically expressed in the format of bodily injury liability per person, total bodily injury liability per accident, and property damage liability. In this context, the first number (200) refers to the maximum amount the insurance will pay for bodily injury to a single individual in an accident. This means that if Ronnie were to cause an accident resulting in bodily injury to one person, the insurance would cover up to $200,000 of that person's medical expenses, lost wages, and other related costs.

The second number in the limit (500) represents the total payout for bodily injury for all individuals involved in a single accident, while the third number (50) pertains to property damage liability. Understanding this structure is key for recognizing how liability coverage works within a personal automobile policy.