Which of the following describes a single limit liability policy?

A single limit liability policy is defined by a limit that applies to both bodily injury and property damage combined. This means that there is one overarching limit of liability for any claims that arise, whether they pertain to injuries sustained by others or damages to their property. The total amount available for coverage will be the same regardless of how the claims are categorized—both bodily injury and property damage are covered under this single limit.

This type of policy is beneficial for policyholders because it simplifies the claims process, eliminating the need to differentiate between different types of claims once the limit is reached. Policyholders can have peace of mind knowing they have a set total they can rely on, which enhances their financial protection in case of a liability event.

Other options do not accurately reflect the definition of a single limit liability policy. For example, a limit that applies separately to property damage would describe a split limit policy, which separates the limits for bodily injury and property damage. Similarly, a limit that is set collectively for multiple claims might apply to certain multi-claim scenarios, but it doesn't specify the single limit nature of coverage. A type of policy with no limit contradicts the concept entirely, as it would imply there is no financial cap on liability, which is not what a