Hawaii Insurance Adjuster License Practice Exam

What is the correct description of the medical expenses limit in the liability section of the Businessowners policy?

1. Per claim

2. Per person, per occurrence

3. Aggregate amount for all claims

4. Lifetime maximum per individual

The correct answer is: Per person, per occurrence

The medical expenses limit in the liability section of a Businessowners policy is defined as "per person, per occurrence." This means that the policy specifies a maximum amount that can be paid for medical expenses for each individual who incurs injuries due to an incident, with that limit applying to each specific event or occurrence separately. This structure ensures that there is a clear cap on how much can be claimed for medical costs resulting from a single incident involving multiple injured parties. The "per person" aspect indicates that each affected individual has their maximum amount they can receive regardless of how many claims arise from the same occurrence. The "per occurrence" part signifies that separate incidents could potentially trigger new limits, providing a fresh maximum payout for each unique event. This approach allows for a tailored and structured method of addressing liability claims and provides assurance to both insurers and insured businesses about the extent of coverage available for medical expenses related to third-party injuries. In contrast, the other options do not accurately capture the specific details of the medical expenses limit. For instance, a "per claim" limit would imply a different structure that does not take individual circumstances into account. An "aggregate amount for all claims" suggests a total cap for multiple claims rather than individual limits per incident. The "l