Hello anybody
Can somebody explain to me the following question on the practice Exam on the back of the General Lines Agent Study Manual
Ralph has a PAP with Liability of 10/20/10, and basic PIP with a $1,000 deductible. He is running one day and is struck as pedestrian by a car. A week later he dies. Medical bills are $3,000 and lost wages are $1,000. How much, if any, will PIP pay in this claim ?
a) $2,000
b) $2,200
c) $7,000
d) $7,200
The answer is d) $7,200.
I need to understand how to reach that answer.
I know for death max payment is $5,000 and medical bill are paid at 80% in this case would be $2,400, so for me the answer should be $7,400 but it is not one of the options.
PLEASE HELP !
Thanks.