3.1 Personal Auto Policy (PAP) & Split Limit Calculations
Calculate third-party bodily injury and property damage payouts under split limit auto policies (e.g. 100/300/50).
Key Blueprint Takeaways
- Split limit 100/300/50 = $100k per person BI, $300k per accident BI, $50k per accident PD.
- Individual claims are capped at the per-person limit regardless of total accident limits.
- Medical Payments (Part B) pays medical expenses for insureds and passengers without regard to fault.
The Personal Auto Policy (PAP) provides comprehensive vehicle protection: Part A (Liability), Part B (Medical Payments), Part C (Uninsured/Underinsured Motorists), and Part D (Damage to Your Auto: Collision and Other Than Collision).
Liability coverage is commonly written using split limits. The first number sets the maximum payout for bodily injury to any single person; the second sets the maximum aggregate bodily injury for all persons in that accident; the third sets the property damage maximum.
An insured carries a Personal Auto Policy (PAP) with split liability limits of 100/300/50. The insured negligently causes a multi-vehicle accident resulting in the following bodily injuries: Passenger A suffers $120,000; Passenger B suffers $150,000; Passenger C suffers $50,000. Additionally, the insured destroys a luxury sports car valued at $65,000. What is the total amount the insurer will pay for this accident under Part A Liability?