Los Angeles Claims Adjuster Property and Causality Practice Exam

In CGL, what does the Medical Payments Limit refer to?

1. Coverage for all medical claims in a policy year

2. The limit for medical expenses due to any one person's injury

3. The total medical expenses for all insured individuals

4. Limits on advertising injury medical claims

The correct answer is: The limit for medical expenses due to any one person's injury

The Medical Payments Limit in a Commercial General Liability (CGL) policy specifically refers to the cap on the medical expenses that will be covered for a single individual's injury. This limit applies regardless of fault, meaning that the insurance may pay for necessary medical expenses incurred by an injured person on the insured premises or as a result of the insured's operations, without needing to establish liability. Understanding this limit is crucial for claims adjusters, as it defines the extent of coverage provided for medical expenses arising from incidents such as slips and falls on the insured’s property. Knowing that this amount pertains to any one person's injury clarifies the scope of potential claims and helps in evaluating how much the insurer is obligated to pay when an injury occurs. The other options either misinterpret the scope of the coverage or address different aspects of liability and medical payments. It's essential to grasp that this limit is specifically tied to individual claims rather than aggregate sums or different types of injuries, which helps maintain clarity in coverage discussions and claims management.