Question 40

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

Medical payments coverage under general liability typically specifies limits on a per person basis. This means that the maximum amount the insurer will pay for medical expenses incurred by any one individual is defined in the policy.

A) per person

This option is correct because medical payments coverage is designed to cover expenses for each individual injured, up to a specified limit. This structure allows for a clear understanding of the coverage amount applicable to each claimant.

B) split limits

This option is incorrect as split limits refer to policies that have different limits for different types of coverage, such as bodily injury and property damage. Medical payments coverage does not operate under split limits, which makes this choice inappropriate.

C) single limits

This option is incorrect because single limits apply to a total coverage amount for all claims combined rather than specifying an amount per individual. Medical payments coverage does not follow this single limit structure.

D) a general aggregate

This option is incorrect since a general aggregate limit refers to the total amount an insurer will pay for all claims within a policy period, rather than specifying limits for medical payments on a per person basis. Thus, it does not accurately describe medical payments coverage.

Conclusion

In summary, the correct answer is "per person" because it accurately reflects the structure of medical payments coverage under general liability policies. Other options do not apply to the specific context of medical payments, as they refer to different types of coverage limits that do not pertain to individual medical expenses.