What does the automobile limits of liability expressed as $25,000/$50,000/$25,000 refer to in coverage?

Prepare for the Arkansas Property and Casualty Exam. Use flashcards and multiple choice questions, with hints and explanations for each question. Get ready to pass!

The limits of liability expressed as $25,000/$50,000/$25,000 in an automobile insurance policy specifically refer to coverage for bodily injury and property damage. The first figure, $25,000, represents the maximum amount the insurer will pay for bodily injury to a single person in an accident. The second figure, $50,000, is the maximum total amount for bodily injury coverage per accident, meaning that if multiple individuals are injured, the total payout for all injuries from that accident cannot exceed this limit. The third figure, $25,000, indicates the limit for property damage liability, which is the maximum amount the insurer will pay for damage to another person's property in an accident.

This structure clearly delineates how much coverage is available for each category of liability, facilitating understanding of the policy's limits for bodily injury to individuals and property damage as a whole, thus aligning with the context of liability coverage in automobile insurance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy