115. A liability policy has $10,000 per occurrence, $50,000 aggregate limit. At different × during the policy period, three people are injured to the amount of $15,000 each. What amount would each person receive?
Answer: A
Each person would receive $10,000.
In this scenario, the liability policy has a limit of $10,000 per occurrence. Since each of the three individuals was injured for $15,000, only $10,000 can be paid out to each person due to the per occurrence limit.
A) $10,000
This option is correct as it aligns with the policy's limit of $10,000 per occurrence. Even though the total amount claimed by each person exceeds this limit, the policy only covers up to $10,000 for each individual incident.
B) $15,000
This option is incorrect because the policy does not allow for payments exceeding the per occurrence limit of $10,000. Each individual’s claim of $15,000 cannot be fully satisfied under the terms of the policy.
C) $20,000
This option is incorrect as it misinterprets the policy limits. The maximum payout for each occurrence is $10,000, so no individual can receive $20,000 based on the stated limits of the policy.
D) $50,000
This option is also incorrect. While the aggregate limit of the policy is $50,000, this does not change the per occurrence limit of $10,000 that applies to each individual claim. Therefore, individuals cannot receive more than $10,000 each.
Conclusion
The correct answer, $10,000, reflects the maximum payout allowed per occurrence under the liability policy. All other options fail to adhere to the policy's specified limits, demonstrating a misunderstanding of how insurance payouts are structured based on occurrence and aggregate limits.