Texas General Lines — Property and CasualtyPersonal LinesMedium
A client has a Personal Auto Policy (PAP) with Medical Payments coverage of $5,000. They are involved in an accident where they are at fault. The client incurs $3,000 in medical bills, and their passenger incurs $4,000 in medical bills. How much will the Medical Payments coverage pay in total for this incident?
- A$3,000
- B$7,000
- C$0, because the client was at fault.
- D$5,000
Show answer & explanationAnswer & explanation
Correct answer: B. $7,000
Medical Payments coverage in a PAP is typically applied per person, per accident, up to the policy limit. Since the client's bills are $3,000 and the passenger's are $4,000, and both are within the $5,000 per person limit, the policy will pay a total of $7,000. Fault does not impact Medical Payments.
Why the other options are wrong
- A. This only covers the client's bills, not the passenger's.
- C. Medical Payments coverage is 'no-fault' and pays regardless of who caused the accident.
- D. This would be the amount if it were a per-accident limit, but it's a per-person limit.
PAP Medical Payments
Medical Payments coverage in a Personal Auto Policy pays for reasonable and necessary medical and funeral expenses for the insured and passengers injured in an auto accident, regardless of fault.
- Coverage is typically per person, per accident.
- It is a 'no-fault' coverage.
- Covers the insured, family members, and other occupants of the covered vehicle.
Memory trick: Med Pay is like a 'first aid kit' for everyone in your car, no questions asked about fault.