Question

Which of the following statements is true regarding the commercial general liability policies Coverage C - Medical Payments?

1) The coverage is liability insurance because it pays only if the insured is legally liable
2) The coverage provides high limits for insurance for bodily injury losses
3) The coverage is considered good will because payments are made without regard to fault
4) The coverage applies to bodily injury to the named insured

Answer 1

The true statement regarding Coverage C - Medical Payments of a CGL policy is that it is considered good will as payments are made without regard to fault. It provides coverage for medical expenses of others incurred due to bodily injury arising from the insured's operations or premises.

Step-by-step explanation:

The question relates to commercial general liability (CGL) policies, specifically Coverage C - Medical Payments. Among the options provided, the true statement is that this coverage is considered good will because payments are made without regard to fault. This means that the insurer will pay for medical expenses due to bodily injury sustained by a person, given that the injury arises from the insured's premises or operations, regardless of whether the insured is legally liable for the injury. Coverage C does not provide high limits for insurance for bodily injury losses (usually it offers lower limits), and it does not apply to bodily injuries to the named insured.