Louisiana P&C Adjuster Practice Exam 2026 – The All-in-One Guide to Exam Success!

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.