An insured has a liability policy that sets the amount for all claims from a single incident at $50,000. What type of limit does this represent?

The correct answer is a per occurrence limit because it specifically refers to the maximum amount an insurer will pay for all claims arising from a single incident, which in this case is set at $50,000. This means that for any one event or accident, no more than that amount will be paid, regardless of the number of claimants or claims resulting from the incident.

In contrast, an aggregate limit would refer to a maximum total payment for all claims over a specific period (typically a year), while a single limit encompasses a combined total for liability without distinguishing between bodily injury and property damage. A split limit would have separate amounts designated for bodily injury and property damage claims. In this instance, since the limit is clearly defined per individual incident, it is categorized as a per occurrence limit.