When bodily injury and property damage limits are specified separately, they are known as what type of limits?

When bodily injury and property damage limits are specified separately, they are referred to as split limits. This means that the insurance policy defines different monetary limits for each category of coverage. For example, a split limit might specify a certain amount of coverage for bodily injury per person, a different amount for bodily injury per accident, and yet another amount for property damage. This allows for tailored coverage based on the specific risks associated with bodily injury and property damage.

In contrast, combined limits provide a single limit that applies to both bodily injury and property damage, which can simplify coverage but might not provide as much tailored protection for each category. Single limits refer to a policy structure where one overall limit applies to all types of claims without specifying separate amounts, and aggregate limits refer to the maximum amount an insurer will pay for all claims during a policy period, encompassing various types of coverage. Therefore, the use of split limits is essential for distinguishing between these categories effectively, which enhances the clarity and control of coverage levels for different risks.