What does the Personal Automobile Policy (PAP) use to express liability limits?

The Personal Automobile Policy (PAP) expresses liability limits through a split limit structure. In this format, different coverage amounts are established for bodily injury and property damage liabilities. This means that the policyholder has distinct maximum limits for each category, typically represented as two or three separate figures.

For example, a split limit might indicate that a policy covers $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage. This allows for a tailored approach to coverage, wherein the insured can choose different limits for the various types of liability exposures they might face while operating a vehicle.

Understanding the split limit structure is vital for adjusters, as it impacts how claims are evaluated and settled in the event of an accident, ensuring that policyholders are adequately represented according to the evidenced financial exposure.