Texas General Lines — Property and CasualtyPersonal LinesMedium
A client has a Personal Auto Policy (PAP) with Medical Payments coverage of $10,000. They are involved in an accident that is their fault. The client's medical bills total $8,000, and their passenger's medical bills total $3,000. How much will the Medical Payments coverage pay for this incident?
- A$8,000
- B$10,000
- C$13,000
- D$11,000
Show answer & explanationAnswer & explanation
Correct answer: D. $11,000
Medical Payments coverage typically applies per person, up to the stated limit. In this case, $8,000 would be paid for the client and $3,000 for the passenger, as both are within the $10,000 per-person limit.
Why the other options are wrong
- A. This only covers the client's medical bills, not the passenger's, which are also covered by Medical Payments.
- B. This is the per-person limit, but both the client and passenger have covered expenses within their individual limits.
- C. This is the total of all medical bills, but the policy limit applies per person, not as an aggregate for the incident.
PAP Medical Payments Coverage
Coverage in a Personal Auto Policy that pays for reasonable and necessary medical and funeral expenses incurred by an insured or passengers due to an auto accident, regardless of fault.
- Applies per person, per accident.
- Covers the named insured, family members, and occupants of the insured's vehicle.
- Pays regardless of who was at fault for the accident.
Memory trick: MedPay is like a personal first-aid kit for everyone in your car.