Question

The named insured and his best friend are involved in an accident in the named insured's vehicle. The vehicle carries Basic PIP limits of $10,000, Additional PIP of $25,000, Extended PIP coverage, and a $1,000 deductible. The passenger's injuries result in medical expenses of $16,850 and lost wages of $5,250. If you were handling the passenger's (hint!) PIP claim, how much would you be willing to pay under the named insured's PIP coverage?

(A) $15,850
(B)$16,630
(C)$10,000
(D) $21,100

Answer 1

The named insured's PIP coverage would be willing to pay $15,850.

Step-by-step explanation:

The named insured's PIP coverage would be willing to pay $15,850 under Basic PIP limits of $10,000, Additional PIP of $25,000, Extended PIP coverage, and a $1,000 deductible. The PIP coverage would cover the passenger's medical expenses of $16,850 minus the $1,000 deductible, resulting in a payment of $15,850.