Question # 20 fr. Back of Manual Quiz

Question # 20 fr. Back of Manual Quiz

by Deleted user -
Number of replies: 2

I am having trouble understanding this question:

Sally has a PAP with basic PIP and $1,000 Med Pay. She takes her friend Beckie w/ her on vacation  to TX. Sally drives her own car. In TX a drunk driver runs a red light and hits Sally and Beckie. Both are hurt. Sally has $4,000 in medical bills and Beckie has $5,000 in medical bills. What will Sally's policy pay in total from Med Pay and PIP??

a. $2,000

b. $5,000

c. $7,200

d. $9,000

The answer is "b." $5,000 and I cannot figure out why. Please advise.

Thanks!

In reply to Deleted user

Re: Question # 20 fr. Back of Manual Quiz

by Deleted user -

Hi Albert,

The calculation is as follows:

Beckie is out of state, and out of her auto so she can't collect PIP.  See bottom page 42.  Think, "out of state, out of car, OUT OF LUCK" for PIP.  So all she gets is $1000 med pay.

Sally gets:  4000 meds x 80% = 3200 PLUS she gets Med pay for the balance of her injuries $800 so Sally collects in total $4000.

Beckie $1000

Sally     $4000

Total    $5000

Its gets real complicated as to how PIP, Med Pay, UM and Liability from at fault driver coordinate.

Randy