In claims that exceed the minimum liability limit for bodily injury and property damage, how is money apportioned?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Elevate your insurance brokerage career in Ontario with our RIBO Practice Exam. Tailored to simulate the real test, it's the perfect tool to ensure your success

The appropriate approach to apportioning funds in claims exceeding the minimum liability limits focuses on ensuring that both categories are adequately funded according to the specifics of the case. When determining how to distribute the available money, one must consider the damages as they apply to bodily injury and property damage.

In this context, the correct answer reflects an allocation where bodily injury receives a substantial amount, acknowledging the often higher costs associated with injuries, medical expenses, and related liabilities. Property damage, while significant, typically garners a smaller portion of the overall payment when bodily injuries are involved.

The chosen answer illustrates a realistic and common scenario where bodily injuries usually require more financial attention due to the potential for greater recovery costs, including lost wages, therapy, and long-term medical care. This distribution aligns with the practices seen in personal injury claims where the severity and nature of bodily injuries frequently necessitate higher compensation compared to property damage alone.

Understanding how these funds are allocated helps in appreciating the balance insurers must maintain when dealing with liability claims while considering the typical implications of personal injury settlements versus property claims.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy