Final answer:
The question relates to insurance policy coverage limits for injured individuals and property damage in car accidents. The example provided illustrates how premiums from a group of drivers can collectively cover the cost of accidents over a year, assuming each driver pays an equal premium.
Step-by-step explanation:
The question appears to describe terms of an automobile insurance policy, outlining coverage for injured persons, total bodily injury, and to cover damage to property in the event of a car accident. If an insurance policy states it covers $200,000 per person injured in an accident, $300,000 for all bodily injuries combined, and $100,000 to cover damage to another person's car or property, these figures represent the maximum amounts the insurance company will pay out for each category of damage per accident.
Using the provided information as a reference, we can illustrate how insurance works. For instance, if a group of 100 drivers has a total annual damage cost from car accidents amounting to $186,000, each driver could pay a premium of $1,860 to collectively cover the cost of all damages sustained within that year. This is based on the statistical costs of small, medium, and large accidents among the drivers, spread across the risk pool.