Rhode Island Insurance Adjuster Exam

If a person operates a taxi service, how much of the passenger's medical bills are covered in an accident?

1. All medical bills

2. Half of the medical bills

3. None of the medical bills

4. Only if the passenger had insurance

The correct answer is: None of the medical bills

In the context of a taxi service, the liability insurance requirements for commercial vehicles differ significantly from those of personal vehicles. Typically, taxi services carry a type of commercial auto insurance that may include liability coverage for passengers. In many jurisdictions, while taxi drivers are responsible for ensuring passenger safety, this does not necessarily mean that they are liable for covering all medical expenses incurred by passengers in the event of an accident. If an accident occurs, the coverage of medical bills for passengers can depend on multiple factors, including the insurance policy provisions and the nature of the accident. In many cases, if the passenger does not have health insurance or the taxi itself does not extend coverage to passenger medical bills, then the responsibility to cover these costs may fall outside of what the taxi service provides. Therefore, the correct response indicates that unless specific provisions in insurance policies are in place, passengers are typically responsible for their medical bills, particularly if they do not hold personal health insurance. This scenario underscores the importance of understanding the nuances of commercial auto insurance and liability coverage when engaging in a taxi service.