North Carolina Adjuster Practice Exam

What is the total liability coverage amount that will apply in Molly's accident involving Dom's car?

1. 50,000

2. 100,000

3. 150,000

4. 200,000

The correct answer is: 100,000

In determining the total liability coverage amount that will apply in an accident, it is essential to consider the structure of the liability insurance policy involved. For instance, an insurance policy may include a bodily injury liability limit, which indicates the maximum amount the insurance company will pay for injuries to one person, as well as a per-accident limit for multiple injured parties. In this scenario, if the correct answer is $100,000, it suggests that the total liability coverage for the accident in question is defined by the specific limits stated in the relevant insurance policy. This amount would typically reflect the highest coverage the insurer would pay in the event of a claim for bodily injuries resulting from the accident, thus establishing a cap that influences any settlements or payments made to injured parties. It's possible that the other amounts provided, like $50,000 or higher, represent different policy limits or different conditions unrelated to the specifics of this case. Understanding the structure of liability coverage is crucial in accurately assessing the coverage amount that applies to any accident scenario.