PLNationalhard
A neighbor's child trips on the insured's walkway and is taken to urgent care for a $600 X-ray. The insured admits no fault and wants the bill paid quickly to preserve the neighbor relationship. Which HO-3 coverage responds, what is its typical default limit, and what is its key conceptual distinction from Coverage E?
ACoverage E Personal Liability; $100,000 default; pays only after a legal-liability determination
Coverage F Medical Payments; $1,000 default; pays without regard to insured's legal liability
CCoverage D Loss of Use; 30% of Coverage A default; pays for the child's medical recovery time
DCoverage C Personal Property; 50% of Coverage A default; treats the medical bill as third-party property damage
Why this is the answer
Coverage F (Medical Payments to Others) is the HO-3's 'goodwill' coverage. It reimburses reasonable medical expenses incurred within three years of an accident causing bodily injury to a person other than an insured, regardless of whether the insured is legally liable. The standard default limit is $1,000 per person, with $5,000 commonly available by endorsement. The conceptual hallmark is no-fault payment: Coverage E requires a legal-liability determination (or settlement) before paying; Coverage F simply pays the medical bill as a relationship-preserving gesture (ISO HO 00 03 Section II — Coverage F).
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