North Carolina Adjuster Practice Exam

If Molly's liability policy covers $50,000 for bodily injury per person, how much is available for multiple injured persons in one accident?

1. $50,000

2. $100,000

3. $150,000

4. $200,000

The correct answer is: $100,000

The correct amount available for multiple injured persons in one accident, given that Molly's liability policy covers $50,000 for bodily injury per person, is indeed $100,000. This figure arises from the typical structure of liability insurance policies, which generally include both a per-person limit and a per-accident limit. In this case, if the policy states that it covers $50,000 per person, this means that for any individual claimant resulting from an accident, the maximum payout is $50,000. However, most liability policies also have an aggregate limit for all claims arising from a single incident. When there are multiple injured persons, the total payout for one accident typically doubles the per-person limit, leading to a total of $100,000 being available across all claims resulting from that single accident. The other options do not accurately reflect the conventional payout structure associated with a liability policy that has a specified limit per individual. Thus, understanding this structure clarifies why $100,000 is the correct answer when considering multiple injured persons in one incident.