Texas Personal Lines Insurance Practice Exam

To determine how much an auto liability policy will pay in this scenario, it's important to understand what the limits of an auto liability policy mean. The limits given are 25/50/15. Here, the first number represents the maximum amount the policy will pay for injury to any one person, the second number is the maximum total amount the policy will pay for injury to all persons in one accident, and the third number is the maximum amount that will be paid for property damage.

In this case, if the total claims for injuries amount to $35,000, we need to consider the maximum payout limits. The limits indicate that the policy will pay up to $25,000 for each individual injured, with a maximum of $50,000 for all claims combined.

Therefore, since there are three persons involved, and they are collectively making a claim totaling $35,000, the policy will pay up to the maximum for the total injuries. The total amount of $35,000 is below the maximum limit of $50,000 for all claims combined. Thus, the policy will cover the full amount of the total claim, which is $35,000.

The correct answer reflects the maximum amount the policy will cover in this situation and is based