Question 83

Tom's policy will pay a maximum of $2,000 to him and $2,000 to his neighbor for medical expenses incurred in the accident.

In the event of an automobile accident, Tom's Personal Automobile policy provides medical payments coverage that allows for up to $2,000 in benefits for each individual injured in the insured vehicle. Therefore, in this scenario, both Tom and his neighbor would be covered for their respective medical expenses up to that limit.

A) Tom's daughter is struck by a car. Tom's policy will pay nothing because she was riding her bicycle in the street.

This statement is incorrect because the medical payments coverage under Tom's policy is designed to cover injuries incurred in his insured vehicle, not for injuries sustained by a pedestrian or cyclist. Since the accident involved his daughter riding a bicycle, the policy would not apply.

B) Tom's daughter is struck by a car while crossing the street. Tom's policy will pay nothing because she was not in a car at the time of the accident.

This option is also incorrect for the same reason as Option A. The medical payments coverage applies to injuries that occur in the insured vehicle, and since the incident involved Tom's daughter being struck by a car while not in a vehicle, the policy would not cover that scenario.

C) Tom is injured in an accident while riding in his neighbor's car. His neighbor carries $2,000 medical payments coverage. The maximum amount that would be paid by both policies for Tom's medical expense is a total amount of $2,000.

This statement is misleading. While Tom's medical expenses would be covered by his neighbor's policy, his own policy could also potentially cover some costs if he is injured in a vehicle not owned by him. However, the maximum amount payable from each policy would not combine to exceed the individual limits of each, which could lead to confusion regarding total benefits.

D) Tom gives his neighbor a ride to the store in the insured car. He has an automobile accident in which they each incur over $2,000 of medical expenses. The maximum amount that would be paid by Tom's policy is $2,000 to him and $2,000 to his neighbor.

This statement is accurate as Tom's Personal Automobile policy covers medical payments up to $2,000 for each occupant injured in the insured vehicle. Therefore, both Tom and his neighbor are eligible to receive coverage for their medical expenses, capped at the policy limit.

Conclusion

In summary, the correct answer is D because it accurately reflects the provisions of Tom's Personal Automobile policy regarding medical payments coverage. Options A and B fail to recognize the limitations of coverage related to non-vehicle incidents, while Option C misrepresents the potential for combined coverage limits. Therefore, D is the only option that correctly represents how the medical payments will be handled under the policy.