Question

Medical payments made under Liability:

a) Are made without regard to fault for bodily injury arising out of an accident subject to exclusions

b) Are made with no exclusionsWhen bodily injury occurs

c) Are not paid unless negligence is proven

d) Are paid without question or delay

Answer 1

Under Liability insurance, medical payments are made without regard to fault for bodily injury arising from an accident, but are subject to policy exclusions. Policies might include deductibles, copayments, and coinsurance to reduce moral hazard by sharing costs with the policyholder.

Step-by-step explanation:

Medial payments made under Liability insurance are typically made without regard to fault for bodily injury arising out of an accident, subject to certain exclusions. This means that the insurance company will pay for the medical expenses incurred due to an accident as outlined in the policy, but not for scenarios that the policy excludes.

Liability insurance is a method of protecting a person from financial loss, where policyholders make regular payments to an insurance company, which then compensates a member who incurs significant financial damage from an event that the policy covers. However, to reduce moral hazard, the insurance policy may include deductibles, copayments, and coinsurance, which requires the insured party to pay a share of the costs.