Canadian Accredited Insurance Broker (CAIB) Three Practice Exam

How does immediate medical attention affect potential claims under the Medical Payments coverage?

1. Increases the likelihood of legal action

2. Decreases the chances of a permanent disability

3. Has no impact on claims

4. Creates a fault-based system

The correct answer is: Decreases the chances of a permanent disability

Immediate medical attention significantly influences the outcomes of potential claims under the Medical Payments coverage by decreasing the chances of a permanent disability. When an injured party receives prompt medical care, it often leads to better overall health outcomes because early diagnosis and treatment can prevent complications that may arise from delays. This is especially pertinent in the realm of insurance claims, as timely intervention helps in managing injuries effectively. If complications are minimized through immediate care, there is a lower likelihood that the injury will result in long-term health issues or permanent disabilities, which could otherwise lead to more complex claims and higher financial repercussions for the insurer. In contrast, delays in treatment can result in more severe health consequences, which might lead to greater claims for medical expenses or a prolonged recovery time. Therefore, encouraging immediate medical attention not only aids in the individual's recovery but also serves to mitigate potential claims, making it advantageous from both the health and claim perspectives.