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Insurance · General

An insured rear-ends another vehicle. The insured has 100/300/100 auto liability limits. The other driver's medical bills are $75,000 and property damage is $12,000. What does the insurer pay?

Correct answer

$75,000 medical + $12,000 PD = $87,000 (all within limits)

  1. A $75,000 medical + $12,000 PD = $87,000
  2. B $100,000 medical + $12,000 PD = $112,000
  3. C $75,000 medical + $12,000 PD = $87,000 (all within limits)
  4. D $100,000 medical only; PD separate policy

Why this is the answer

100/300/100 means: $100,000 per person BI / $300,000 per occurrence BI / $100,000 PD. Medical $75,000 < $100,000 per-person limit — paid in full. Property damage $12,000 < $100,000 PD limit — paid in full. Total paid: $87,000. Note: if medical bills were $150,000, the per-person limit would cap payment at $100,000.
Source: P&C Exam, Auto Liability Limits

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