Texas Property and Casualty License Practice Exam

How long does coverage last for medical payments in a personal auto policy?

1. Up to one year

2. Up to three years

3. Indefinitely, as long as premiums are paid

4. Only during the accident

The correct answer is: Up to three years

In a personal auto policy, medical payments coverage is designed to cover medical expenses related to injuries sustained by the insured and passengers in the insured vehicle, regardless of fault. The duration for which this coverage lasts is typically up to three years from the date of the accident. This period allows claimants ample time to seek treatment for their injuries and file claims for their medical expenses. The three-year time limit reflects the standard statute of limitations that varies by state, ensuring that individuals have sufficient opportunity to address their medical needs without the pressure of immediate financial constraints. After this period, the policy would not cover any medical expenses arising from the accident, aligning with the general practice in insurance to set a clear framework for coverage duration. Other options would not accurately reflect standard policy terms: coverage does not last indefinitely as ongoing premiums do not extend the medical payment period beyond three years, and it is not limited to only the duration of the accident itself, as claims can be made afterward for medical expenses incurred.