Example Question

Example Question

by Marianela Aybar -
Number of replies: 2
In the bank of the manual, it has this question: Sally has a Personal Auto Policy with basic PIP and $1000 Med Pay coverage. She has no UM coverage. Her neighbor, Beckie, owns a car and has basic PIP with $2000 Med Pay coverage. Sally is in Beckie's car in Orlando with Beckie driving. Beckie loses control and flips the car. Sally incurs $12000 of medical bills. How much PIP will Sally collect from all available sources? The answer is $9600. But I am having trouble understanding why. Can I get some clarification as to how to arrive at that number? Thanks
In reply to Marianela Aybar

Re: Example Question

by Marie Tan -
I think this is why: Sally has basic PIP which typically pays 80% for medical expenses. $12,000 x 80% = $9,600.
In reply to Marianela Aybar

Re: Example Question

by Jan Bradburn- -

Marianela,

Sally is only able to collect from her PIP coverage.  She has $12,000 in medical expense and PIP will pay 80% or $9600.

Jan