Arkansas Subscriber

A

We do not believe that the insurer is correct in its interpretation of the med pay coverage. The insuring agreement on the med pay endorsement states that the insurer will pay for reasonable expenses incurred for necessary medical and funeral services; it does not state that these expenses are covered unless some other insurance or payment plan applies. The insured paid a premium for the medical payments coverage and there is no exclusion or limitation that would apply in this instance.

The fact that the insured also had a burial policy is not relevant to the coverage afforded under the med pay endorsement. This is evident in that the med pay endorsement states that the reference to other insurance applies only to other collectible auto medical payments insurance. Also, the limit of insurance clause on the endorsement indicates that no duplicate payments will be paid under the med pay coverage and any liability coverage form, uninsured motorists coverage form, or any underinsured motorists coverage form. If the insurer had wanted to limit the amount payable to the insured based on other payments such as a burial policy or a pre-paid funeral arrangement, it should have specifically included that information in the med pay endorsement.