Final answer:
Personal Injury Protection (PIP) applies to pedestrians and can extend out of state ( option C) , generally following the policyholder. It is designed to pay for medical expenses and other damages regardless of fault in an accident.
Step-by-step explanation:
Personal Injury Protection (PIP) is an insurance coverage that is mandated in some states. This coverage is designed to pay for medical expenses, and in some cases, lost wages and other damages, regardless of who is at fault for an accident. PIP applies to pedestrians in the same way it applies to drivers.
In states where PIP is required, it not only covers the policyholder but also extends to cover injuries to pedestrians involved in an accident with the policyholder's vehicle, regardless of who is at fault.
As to whether PIP applies to pedestrians out of state, it primarily depends on the terms of the insurance policy and the law in the state where the policy was issued. However, generally, PIP coverage follows the policyholder, including when they are out of state. Therefore, if a pedestrian covered by PIP is injured in a different state, their PIP coverage may still apply.
Given the options:
A) PIP does not apply to pedestrians.
B) PIP applies only in-state.
C) PIP applies out of state.
D) PIP applies to pedestrians in designated areas.
The most accurate response would be C) PIP applies out of state because the coverage typically follows the policyholder.