State Farm Auto Insurance Practice Test

How are Personal Injury (BI) limits typically expressed in an auto insurance policy?

1. As a single figure

2. In a percentage format

3. In split limits format

4. As a total amount for the policy period

The correct answer is: In split limits format

Personal Injury Limits, often referred to as Bodily Injury (BI) limits, are typically expressed in a split limits format within an auto insurance policy. This means that the policy states different maximum amounts that the insurer will pay for various types of claims related to bodily injury. Generally, this format provides separate limits for each individual involved in an accident and a total limit for all claims arising from a single accident. The split limits format gives clarity and sets boundaries for coverage, which can help consumers understand the extent of their protection. For example, a policy might provide limits of $50,000 per person for bodily injury and up to $100,000 total per accident. This structure is standardized in many regions, making it easier for policyholders to compare coverage options across different policies. Other formats such as expressing limits as a single figure, in a percentage, or as a total amount for the policy period aren't typical for Personal Injury limits. While these may be applicable in different contexts or types of insurance, they do not represent the standard practice for Bodily Injury coverage in auto insurance policies.