Property and Casualty Insurance Practice Exam

Who benefits directly from Medical Payments coverage?

1. The insured party alone

2. Only third-party claimants

3. The passenger in the insured vehicle

4. Both the insured and third-party claimants

The correct answer is: The insured party alone

Medical Payments coverage is designed to cover medical expenses resulting from injuries sustained in an automobile accident, regardless of fault. This coverage typically benefits the insured party as well as any passengers in their vehicle. In situations where the insured is involved in an accident, Medical Payments coverage can pay for medical bills, regardless of whether the insured or the other party was at fault for the accident. This coverage is particularly advantageous as it allows for prompt medical treatment for the insured and usually applies to the insured's passengers as well, which is often why the coverage is viewed as beneficial for more than just the insured individual. The incorrect answer identifies a viewpoint that restricts the benefits of the coverage to just the insured, ignoring the clause whereby passengers are also protected under this coverage, thereby providing a broader scope of who may benefit from Medical Payments coverage.