What would generally dictate the maximum payment in the event that both property damage and bodily injury occur in an accident under a single limit policy?

In a single limit policy, a specified maximum amount of coverage is provided for both property damage and bodily injury combined. Therefore, the maximum payment in the event of an accident involving both types of losses will be dictated by the higher of the two losses.

This means that if an accident results in both significant property damage and considerable bodily injury, the insurer will pay up to the maximum limit of the policy, ensuring coverage for the larger claim. The insured is protected from substantial financial loss as the coverage does not differentiate between the two types of losses, allowing the insurer to provide the amount necessary to cover the larger financial risk presented by either damage or injury.

The other options suggest different ways of calculating the maximum payment, but in a single limit policy, only the highest loss amount is relevant for determining payouts. This approach simplifies the claims process and ensures that the insured has sufficient coverage for serious incidents that could involve considerable damage or injury costs. Thus, understanding that the higher loss dictates the payment underlines the nature of a single limit policy's structure.