Question

Jose has a policy with $50,000 PIP (Personal Injury Protection) coverage. He causes an

accident in which he hurts 10 people, including himself. All of the injuries are minor
(Less than $10,000 each). The total cost of injuries was $72,000. How much will
insurance pay in PIP coverage?

Answer 1

Answer: $7200

Explanation:

Given

The policy covers the damage of $50,000 PIP

He injured 10 people including himself

The total cost of injuries is $72,000

The cost per person is $7200

The company only pays for the damaged bear by the policyholder, not by the others.

`\therefore` the company only pays $7200 in coverage.