What is the split percentage for the liability limit between bodily injury and property damage under the "priority of payment rule"?

The priority of payment rule is crucial in understanding how liability limits are allocated in insurance policies, particularly when it comes to bodily injury and property damage. Under this rule, a split percentage of 90% for bodily injury and 10% for property damage signifies that a significant majority of the liability limit is prioritized towards bodily injury claims.

This allocation reflects the seriousness of bodily injury claims compared to property damage. In many liability insurance policies, bodily injury is often considered a more severe consequence, thus warranting a larger portion of the liability limits. The 90%-10% split ensures that when a loss occurs, more substantial claims, such as medical expenses or lost wages from bodily injuries, are adequately covered before property damage expenses are addressed.

Choosing a different split, such as 100%-0%, would imply that property damage claims are not covered at all, which is not typical in liability insurance structures. Similarly, other splits like 80%-20% or 70%-30% may not adequately reflect the priority given to bodily injury claims in the allocation of liability limits. Therefore, the 90%-10% split aligns with industry standards and expectations regarding the prioritization of bodily injury over property damage in insurance coverage.