Final answer:
Policyholder B's business auto policy will provide $300,000 for bodily injury claims and $50,000 for property damage claims, as per the limits of 100/300/50, even though the total claims exceed these amounts.
Step-by-step explanation:
Policyholder B's business auto policy clearly states limits of 100/300/50. This means the policy will cover up to $100,000 per person for bodily injury (BI), $300,000 per accident for bodily injury, and $50,000 per accident for property damage (PD). Based on the limits of the policy, which are 100/300/50, we can see that the policyholder has coverage for bodily injury (BI) claims up to $100,000 per person, $300,000 per accident, and property damage (PD) claims up to $50,000. In the accident for which Policyholder B was liable, there were BI claims of $80,000, $100,000, and $125,000, and PD claims of $20,000 and $35,000. In this case, the policy will pay up to the policy limits, which are $100,000 per person $300,000 per accident for BI claims, and $50,000 for PD claims.
In the case presented, the total BI claims amount to $305,000 ($80,000; $100,000; $125,000), but the policy limit per accident is $300,000, thereby the insurer will pay the maximum of $300,000 towards BI claims. As for PD, the claims are $20,000 and $35,000, totaling $55,000, but again, due to the policy limit of $50,000 per accident, the insurer will pay a maximum of $50,000 toward PD claims. Therefore, the direct answer in two lines to how much the policy will pay is a total of $350,000, which is broken down into $300,000 for BI and $50,000 for PD.