Other Than Life (OTL) Practice Exam

Medical payments made under Liability:

1. Are made without regard to fault for bodily injury

2. Are made with no exclusions when bodily injury occurs

3. Are not paid unless negligence is proven

4. Are paid without question or delay

The correct answer is: Are made without regard to fault for bodily injury

Medical payments made under liability insurance cover the costs of bodily injury without needing to establish fault. This means that the insurer will pay for medical expenses up to a specified limit regardless of whether the insured was negligent or responsible for the injury. This aspect of liability insurance is designed to provide prompt assistance to injured parties and encourages the resolution of claims without lengthy legal proceedings. The other options suggest conditions or limitations that are not accurate in the context of medical payments under liability policies. For instance, while some policies may have exclusions, this does not align with the innate purpose of medical payments, which is to provide immediate support regardless of determining fault. Additionally, the notion that payments are only made upon proving negligence contradicts the fundamental framework of the medical payments coverage. Lastly, while timeliness can vary depending on the insurer and situation, the concept that payments are made without question or delay can be overly simplistic, as there may still be a claims process involved, even if fault does not have to be established.