Which statement best describes the concept of a Combined Single Limit in auto policies as presented?

• A. It's a single limit that applies to both bodily injury and property damage per accident
• B. It equals the sum of all per-claim limits across the policy year
• C. It applies only to medical payments
• D. It is the same as the per-person BI limit

Answer: (A)

The key idea is that Combined Single Limit is one liability cap that covers all damages from a single accident, no matter whether they’re bodily injury or property damage. Instead of having separate limits for BI and PD, a CSL combines them into one amount that can be used for any combination of injuries and property damage arising from that crash.

That’s why this description fits best: you have one limit per accident that applies to both types of losses, so total payout for an incident cannot exceed that single amount.

For example, if the CSL is 300,000 and an accident causes 180,000 in bodily injuries and 120,000 in property damage, the total is 300,000 and the insurer would cover it up to that limit. If injuries and damages total more than the CSL, the excess is not paid by the policy.

This differs from the other statements: CSL is not the sum of all per-claim limits over the policy year, it does not apply only to medical payments, and it is not the same as the bodily injury limit per person.