Unit Seven - Medical Expenses quiz question

Unit Seven - Medical Expenses quiz question

by Deleted user -
Number of replies: 2

Hello,

Can someone please explain to me (break it down) how the answer is 13.  So confused :(

The correct answer:

$13,000 is payable, maximum $5,000 per person under medical payments.

The Question:

An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: Three persons were injured in an accident. There are no liability claims, but there are medical expenses of $3,000 for one person, $7,000 for the second person and, $12,000 for the third person. How much is payable?

In reply to Deleted user

Re: Unit Seven - Medical Expenses quiz question

by Deleted user -

In this question the maximum payout is $5,000 per person for medical payments

The first person only used $3,000, not the whole $5,000 available

Second persons expenses is $7,000 but only $5,000 is available

third person same thing, their expenses are $12,000 but only $5,000 is available for them

This would mean: $3,000 first person + $5,000 second person + $5,000 third person = $13,000

I hope that helps you out!