Timothy was driving his friend Nick to football practice. While driving, he was hit by a driver who had coverage of 100/300/50. Tim and Nick each suffered some physical injuries. Based on this information, which of the following is correct?
A) The policy would provide a maximum of $100,000 for each person who was injured, and no more than $300,000 for total injuries of all parties in the accident.
B) Individually, Timothy and Nick's injuries would be covered to $300,000 each.
C) The total coverage for Timothy and Nick would be $100,000, and the driver who caused the accident would be covered to $50,000.
D) Nick's injuries would be covered to $50,000.

A) The policy would provide a maximum of $100,000 for each person who was injured, and no more than $300,000 for total injuries of all parties in the accident.

Explanation:

The auto liability insurance policy held by the driver is an example of a split limit liability insurance. The split limit insurance of 100/300/50 is explained thus:

$100,000 - bodily injury liability insurance per person

$300,000 - Total bodily injury liability insurance per accident

$50,000 - Property damage liability per accident.