P&CTexashard
An auto policy has split limits of 100/300/50. An accident injures three people with BI damages of $150,000, $100,000, and $80,000, and causes $60,000 in property damage. What is the total the insurer pays?
$280,000 BI + $50,000 PD = $330,000
B$330,000 BI + $60,000 PD = $390,000
C$300,000 BI + $50,000 PD = $350,000
D$150,000 + $100,000 + $80,000 + $60,000 = $390,000
Why this is the answer
100/300/50 applies three caps: $100K per person, $300K per accident (BI aggregate), $50K PD. Person 1: $150K actual, capped at $100K. Person 2: $100K — at per-person limit. Person 3: $80K — within limit. Total BI = $280K, which is below the $300K per-accident aggregate so no further reduction. PD: $60K actual, capped at $50K. Total payment = $280K + $50K = $330K. Distractor C ($350K) incorrectly applies the $300K BI aggregate even though actual BI is only $280K. Distractor D ignores all caps.
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