Question 40

Medical payments coverage usually has stated limits that are per person.

Medical payments coverage under general liability typically applies on a per person basis, meaning there is a specific limit for each individual who incurs medical expenses due to an incident covered by the policy.

A) per person

This option is correct as medical payments coverage is designed to cover the medical expenses of individuals injured on the insured’s premises or due to their operations, with limits applied individually to each person affected.

B) split limits

This option is incorrect because split limits refer to a scenario where different limits apply for different types of coverage, typically in auto insurance. Medical payments coverage does not utilize split limits as it focuses on individual per person coverage.

C) single limits

This option is incorrect as single limits indicate there is one total limit for all claims combined, which is not how medical payments coverage operates. Each person's medical expenses are covered up to a specified limit, not a combined total.

D) a general aggregate

This option is incorrect because a general aggregate limit applies to the total amount payable for all claims during a policy period, which is not applicable to medical payments coverage that is focused on individual claim limits.

Conclusion

The correct answer is definitively A) per person, as it accurately reflects the nature of medical payments coverage in general liability policies, which is intended to cover individual medical expenses up to a specified limit for each person. All other options fail to correctly describe the structure of limits associated with medical payments coverage, highlighting a misunderstanding of liability insurance terms.