Question

Mary has insured her car under a PAP (Personal Auto Policy) and has purchased the following coverages and limits (in parentheses): Liability ($50,000/$100,000/$30,000); Medical Payments ($5,000), and Uninsured Motorists ($50,000/$100,000/$50,000). One day Mary is driving her own car and accidentally collides with a tree. Mary's arm is broker in the accident and her friend (a passenger in Mary s car) suffers a broken nose. Mary's friend does not have any insurance and does not want to sue Mary as she believes that the accident was not Mary's fault. Ignoring any deductibles, which of the following statements is most correct?

a) Mary's liability coverage will pay for her friend's broken nose.
b) Mary's Medical Payments coverage will pay for her friend's broken nose.
c) Mary's Uninsured Motorists coverage will pay for her friend's broken nose.
d) Mary's friend will need to sue her for damages.

Answer 1

Mary's Medical Payments coverage will be used to pay for her friend's broken nose incurred during the accident, as this coverage applies regardless of fault.

Step-by-step explanation:

Mary has insured her car under a Personal Auto Policy (PAP) with various coverages. When she collides with a tree, resulting in her own and her friend's injuries, we need to determine which coverage will apply to her friend's broken nose, given that Mary's friend does not intend to sue and lacks insurance. The correct statement is that Mary's Medical Payments coverage will pay for her friend's broken nose. The Medical Payments coverage is designed to cover medical expenses for injuries sustained by the driver and passengers in the insured's vehicle, regardless of fault. Liability coverage would come into play if there was a legal responsibility to a third party, and Uninsured Motorist coverage protects against injuries caused by uninsured drivers, which is not the case here.