I have went through these 4 questions and just can't seem to figure how you came up with these answers. I am looking for some help in understanding these problems. Thank you!
Question 1: Tim has a Personal Auto Policy providing PIP coverage with a $1,000 deductible. Tim is injured in his vehicle and sustains $9,000 in medical bills. How much will his PIP pay?
The correct answer: $6,400
Question 2: Jim has a Personal Auto Policy with basic PIP. Gail, his Florida neighbor, also has a Personal Auto Policy with basis PIP. Jim is driving Gail's car, is involved in an accident and suffers $15,000 in medical bills. How much will Gail's policy pay under her PIP?
The correct answer: Gail's policy will not pay PIP benefits. Jim's policy will pay the maximum under his policy of $10,000.
I saw this later in Unit 3- “It should be noted that the exemption of liability goes with the vehicle rather than the person causing the accident. For example, if a person who does not insure his own vehicle is driving an insured vehicle belonging to someone else, he or she is exempt from liability.”
Question 3: Pete has a Personal Auto Policy with basic PIP. Pete driving his car takes his son, Joe, and his son’s friend, Jim, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Joe suffers $5,000 in injuries, and Jim suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries?
The correct answer: $10,400
Question 4: Joe carries $2,000 Medical Payments coverage on his automobile. Joe's daughter used a friend's automobile and was involved in an accident resulting in $3,500 in medical bills. The friend carries Medical Payments coverage in the amount of $3,000. How much will Joe's policy pay, if any? (Ignore PIP coverage)
The correct answer. C. $500