If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?

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Prepare for the Wisconsin Casualty Insurance Test. Study effectively using multiple choice questions with hints and explanations. Ensure success in your exam!

Multiple Choice

If an auto policy has liability limits of 40/60/20, what would be the equivalent combined single limit?

Explanation:
A combined single limit (CSL) is a single dollar amount that caps all damages from one accident for both bodily injury and property damage. With split limits like 40/60/20, you use the bodily injury limit that applies per accident (60,000) and the property damage limit (20,000), then add them: 60,000 + 20,000 = 80,000. The per-person limit (40,000) doesn’t enter into the CSL calculation, since CSL covers total injuries in the accident, not an individual cap. So the equivalent CSL is 80,000.

A combined single limit (CSL) is a single dollar amount that caps all damages from one accident for both bodily injury and property damage. With split limits like 40/60/20, you use the bodily injury limit that applies per accident (60,000) and the property damage limit (20,000), then add them: 60,000 + 20,000 = 80,000. The per-person limit (40,000) doesn’t enter into the CSL calculation, since CSL covers total injuries in the accident, not an individual cap. So the equivalent CSL is 80,000.

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