What does the term "split" refer to in insurance policies?

In the context of insurance policies, the term "split" refers to a division of liability limits among different types of coverage. This means that a policyholder might have separate limits for different types of coverage, such as bodily injury and property damage liability. For instance, a policy might have a bodily injury limit of $100,000 per person and a total property damage limit of $300,000, which reflects a split liability coverage format.

This arrangement allows policyholders to have more control over their coverage limits tailored to their specific risks and needs. By providing distinct limits for different categories, it aids in clarifying how much protection is available under each coverage type in the event of an incident.

Other options may address different insurance concepts, such as coinsurance agreements or claim adjustment processes, but they do not accurately reflect the specific meaning of "split" in this context. Understanding the implications of split limits can help policyholders make informed decisions regarding their insurance coverage and adequacy.