What does a split limit of $100,000/$300,000/$50,000 signify?

A split limit of $100,000/$300,000/$50,000 signifies specific coverage amounts for bodily injury and property damage in an auto insurance policy. The first figure refers to the maximum amount paid for bodily injury (BI) per person injured in a single accident, which is $100,000 in this case. The second figure, $300,000, indicates the total amount that the insurance company will pay for bodily injury for all persons involved in a single accident, regardless of the number of claimants. Finally, the third figure of $50,000 refers to the limit for property damage (PD) payable per accident.

This structure clearly delineates the maximum payouts available, which is essential for understanding liability coverage for both bodily injury claims per person and per accident, as well as property damage claims arising from any single incident. Thus, by breaking down these limits, policyholders can see how liability coverage is distributed among various accident scenarios.

In this case, the answer chosen reflects the correct understanding of these limits, ensuring that they are applied correctly as per requirements for auto insurance coverage.