What does a Combined Single limit refer to in insurance?

A Combined Single Limit (CSL) is a specific type of liability insurance that consolidates coverage for both bodily injury and property damage into one total limit for any single accident. This means that rather than having separate limits for these two types of claims, a CSL provides a unified coverage amount. For instance, if a policy has a combined single limit of $500,000, it can cover either bodily injury or property damage claims arising from an accident up to that total amount. This offers flexibility in how claims can be paid out, allowing for a simpler claims process that does not require the insurer to distinguish between the two types of damages when compensating a claim.

The other options describe limits that do not accurately reflect how a combined single limit functions. A limit applied separately to property damage and bodily injury claims would suggest that each type of claim has its own distinct limit, which is contrary to the nature of a CSL. Additionally, a limit that applies to certain types of risks only does not encompass the general applicability of a combined single limit across both bodily injury and property damage claims. Lastly, a maximum payout based on the age of the insured is irrelevant to the definition of a CSL, which is focused on the policy's coverage limits rather than personal attributes