In the 10/20/10 no-fault limits, what does the '20' represent?

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Prepare for the Florida Claims Adjuster (6-20) Test. Use flashcards and multiple choice questions, with hints and explanations for each question. Ace your exam!

Multiple Choice

In the 10/20/10 no-fault limits, what does the '20' represent?

Explanation:
In no-fault auto coverage, the three numbers show how much the policy will pay for injuries in different ways, and the middle number is the key here. The 20 represents the total amount the insurer will pay for bodily injury benefits for all injured people in a single accident. In other words, there is a combined limit of 20,000 for that crash, regardless of how many individuals are injured. So even if several people have medical bills, the payout under that accident can’t exceed 20,000 in total. That’s why the correct interpretation is that the 20 is the combined total liability for all injuries in one accident.

In no-fault auto coverage, the three numbers show how much the policy will pay for injuries in different ways, and the middle number is the key here. The 20 represents the total amount the insurer will pay for bodily injury benefits for all injured people in a single accident. In other words, there is a combined limit of 20,000 for that crash, regardless of how many individuals are injured. So even if several people have medical bills, the payout under that accident can’t exceed 20,000 in total. That’s why the correct interpretation is that the 20 is the combined total liability for all injuries in one accident.

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