3. When increased liability limits are purchased on a personal auto policy, what amount of coverage is available for claims by an injured family member?
Answer: D
Same as the amount provided for nonfamily members
When increased liability limits are purchased on a personal auto policy, the coverage available for claims by an injured family member is the same as the amount provided for nonfamily members. This ensures that family members are afforded the same level of protection as other individuals involved in an accident.
A) Double the amount provided for nonfamily members
This option is incorrect because purchasing increased liability limits does not automatically result in double the coverage for family members. The coverage remains consistent with nonfamily members as per the terms of the policy.
B) Half the amount provided for nonfamily members
This option is also incorrect. The liability coverage does not diminish for family members; instead, it aligns with the coverage available to nonfamily members. Thus, family members receive the same coverage rather than a reduced amount.
C) None other than the State minimum limits
This option is not accurate because it suggests that the coverage for family members is limited to state minimums. However, if increased liability limits are purchased, the coverage extends beyond just the minimum state requirements.
D) Same as the amount provided for nonfamily members
This is the correct answer. When higher liability limits are selected, they apply equally to both family and nonfamily members, ensuring comprehensive coverage in the event of claims resulting from auto accidents.
Conclusion
The correct answer is definitive because increased liability limits on a personal auto policy provide equal coverage for both family and nonfamily members. Options A, B, and C fail to accurately reflect this policy structure, as they suggest disparities or limitations that do not exist under the terms of the coverage.