Florida Insurance Licensing Practice Exam

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An insured has a SPLIT limit liability policy with 10/20/10 limits. How much liability insurance will his policy pay for these claims of Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 = $18,000?

$30,000
$20,000
$40,000
$10,000

The correct answer is: $20,000

The policy's split limit liability of 10/20/10 means that for a single occurrence, the policy will pay a maximum of $10,000 for bodily injury to any one person (Passenger 1 or 2) and a maximum of $20,000 for bodily injury for all persons (Passenger 1 + Passenger 2 + Passenger 3) in the accident. Therefore, the total liability insurance paid by the policy for the claims of Passenger 1, Passenger 2, and Passenger 3 is $10,000 + $10,000 = $20,000. Option A and C are incorrect because they exceed the maximum limit of $20,000 for all persons. Option D is incorrect because it is the maximum limit for a single person, which is not enough to cover all three claims. Option B is the only correct answer because it is equal to the