Final answer:
The standard contract exclusion for a PMD physician treating a family or household member typically means that professional liability insurance does not cover claims for medical services provided to family members due to potential conflicts of interest and the impairment of objectivity.
Step-by-step explanation:
The standard contract exclusion relative to a PMD (private medical doctor) treating a member of the same family or household typically refers to a clause in professional liability insurance policies that excludes coverage for claims arising from medical services provided to family members. This is because treating family members can present a conflict of interest and may impair the professional's objectivity, possibly leading to substandard care. Furthermore, insuring such situations could present a moral hazard, where the physician might be less diligent due to the personal relationship with the patient.
Exclusions may vary by insurance company and policy, so it's important for medical professionals to carefully review their contracts and understand the scope of their coverage. In the context of PMD physicians, this exclusion highlights the importance of maintaining professional boundaries, even with individuals who are close to them personally.