1. All the following statements concerning the liability coverage under the personal auto policy are correct, EXCEPT:

(A) A single limit means that the insurance applies to a given accident, without a separate limit for each person injured or for bodily injury versus property damage.

(B) A split limit means that the limits for property damage and for bodily injury are different and are applied separately.

(C) If the insurer decides to defend the insured, the defense costs reduce the limits of liability coverage.

(D) Limits are raised if an insured has an out-of-state accident in a state that requires higher limits.