Louisiana P&C Adjuster Practice Exam

Which statement is true regarding Acme Hardware's liability for Gary's injury?

1. Acme's General Liability policy will not cover the incident

2. Acme will cover Gary's medical expenses under Medical Payments

3. Gary cannot file a claim since he caused his own injury

4. Gary's claim would fall under Property Damage coverage

The correct answer is: Acme will cover Gary's medical expenses under Medical Payments

The statement indicating that Acme will cover Gary's medical expenses under Medical Payments is accurate because most general liability policies include a Medical Payments provision. This coverage is designed to pay for medical expenses incurred as a result of injuries sustained by visitors on the business premises, regardless of fault. Therefore, even if Gary were partially responsible for his injury, the Medical Payments coverage would still apply, allowing for the payment of his medical expenses without necessitating a determination of liability. Understanding this provision helps clarify that businesses often carry this type of coverage to foster goodwill and ensure prompt medical assistance to injured parties, ultimately reducing the potential for lawsuits. It's also important to note that this is separate from liability coverage, which might consider the question of fault and provide different benefits based on the circumstances of the incident.