Which of the following best describes the liability limits of 25/50?

The liability limits of 25/50 are best described as "per person and per accident." In this context, the first number (25) represents the maximum amount the insurance will pay for bodily injury to a single individual involved in an accident, while the second number (50) represents the total amount the insurance will pay for bodily injury for all individuals involved in that accident.

For example, if a driver with these liability limits causes an accident resulting in injuries to two passengers, the maximum payout for one injured party would be $25,000, but the total payout for all injured parties would not exceed $50,000. This structure is crucial as it delineates how insurance companies handle claims based on the number of injured parties.

Other options do not correctly represent the functionality of these liability limits. Describing them as "per accident only" neglects the individual cap for each person. A "combined single limit" suggests a total cap for all damages rather than distinct caps per individual. Lastly, referring to the limits as a "maximum per medical bill" inaccurately frames the limits since they are based on injury liability and not on specific medical expenses incurred.