Question

The basic amount of Medical Payment coverage under a CGL policy is:

1) 2,000
2) 3,000
3) 1,000
4) 5,000

Answer 1

The basic Medical Payment coverage under a CGL policy typically starts at 4) $5,000. Health insurance plans feature deductibles and cost-sharing mechanisms like co-insurance or co-payments that affect out-of-pocket costs.

Step-by-step explanation:

The basic amount of Medical Payment coverage under a Commercial General Liability (CGL) policy typically starts at $5,000. However, the specific amount can vary depending on the policy and the insurance provider. This coverage is designed to pay for immediate medical expenses for bodily injury sustained by a non-employee, commonly offered as part of a liability insurance policy. It's important to note that this is just a general starting point and businesses should consult their policy or insurance agent for exact coverage details.

Health insurance plans often include deductibles and require cost-sharing such as co-insurance or co-payments, which can impact the out-of-pocket expenses for individuals. For example, if a health plan has a $1,000 deductible, the insured would need to pay that amount before the insurance starts to pay. Moreover, the insured might be responsible for a percentage of the costs as co-insurance or a fixed co-payment for specific services.