You have a homeowner's policy that insures no-fault medical payments up to $500 per person.During your daughter's first slumber party,the brass ceiling fan fell and injured your daughter and two of her guests.How much of the following medical expenses will your homeowner's policy pay under medical payments coverage?

A)$500
B)$850
C)$1,050
D)$1,200

Question

You have a homeowner's policy that insures no-fault medical payments up to $500 per person.During your daughter's first slumber party,the brass ceiling fan fell and injured your daughter and two of her guests.How much of the following medical expenses will your homeowner's policy pay under medical payments coverage?
 ​
A)$500 
B)$850 
C)$1,050 
D)$1,200

Quizplus · Accepted Answer

The homeowner's policy will pay up to $500 per person. Since three people were injured, the maximum payment would be $1,500. However, the policy only covers up to $500 per person, so the policy will pay $500 for each injured person, totaling $1,500. The total medical expenses are $850, which is less than the maximum payment, so the policy will pay the entire amount. Therefore, the best choice is B, as the policy will pay $850 for the medical expenses.

You Have a Homeowner's Policy That Insures No-Fault Medical Payments