Hi, I'm new and taking an on-line conversion course for my 2-20. Did great on Quizes for Unit 1 & 2. Stumbling on PIP. What is the criteria that helps me determine when to use the PIP $10,000 maximum and at what point does the deductible get used or not. Do I calculate 80% of medical bills then take deductible from result or do I take deductible off the medical bills first then calculate the 80% of the result? And, why does the manual say the deductible will not reduce the maximum $10,000 PIP? How can it not? Very confusing to me. HELP please!
Here is an example, let say you have $500 deductible on your PIP, then you got in auto accident with $6,000 in medical bills. So your PIP will pay:
$6000-$500 deductible= $5,500
Then, $5,500 is subject to 80% = $4,400
I hope it helps
Yana, that's what I was starting to think and it's an excellent example. Sometimes, they don't describe a deductible amount and give an example where insured Pete suffers $8,000 in medical bills, friend Joe suffers $5,000 and Joe's son $6,000. No mention of deductible and just calculate 80% off the bills. Should I assume there's no deductible?
This is from Unit 3, Lesson 2. They never mentioned that Joe (friend) is a roommate (member of household) and therefore even though they're driving insured's car out of Florida, Joe is covered but his son is not. They just say Joe is a "friend". Poorly written question in my opinion. Thanks so much for your help!
I think I may have answered my own question. The question said "full PIP" and I think that means there is NO DEDUCTIBLE which might be why they took the 80% directly from the medical expenses and no deductible was involved. I'm hoping to confirm this via this forum and continued reading. Thanks again, Yana.
There is only a deductible if the question provides a PIP deductible amount. You can't assume a PIP deductible if no amount is given - even if the question does not refer to "full PIP". If there is a PIP deductible provided in the question, you always subtract the deductible from the medical expense before you apply the percents. I hope this helps.
Jan
Yes - you should assume there is no deductible. A deductible is not rquired with PIP.
With course exam questions, as well as state exam questions, do not assume information that is not provided. The referenced question states that Joe is a friend. This assumes that Joe is not provided coverage as a resident relative. If the question wanted you to know that Joe lived in the same household as the insured and his son, it would be stated in the question.
When you take the state exam, it is important that you do not "read" information into the question. Answer each question based on the facts provided. You are likely to see a question similar to this on the state exam.
Jan
Hi Jan,
The question did not say Joe was a member of the household, it only said Joe was Pete's "friend" and that is what threw me. I did not read anything into it this time. The answer said he was a member of the household but when I reviewed the question, there was no mention of Joe being a member of the household.
If Joe is Pete's friend you should assume that he is not a member of the household. That's whyJoe did not have coverage under PIP.
Jan
Hi Jan,
I did assume that he was NOT a member of the household because he was not listed as such in this question even after I re-read the question. However, I got the answer wrong because the answer said that he WAS a member of the household and was covered. Joe's son was not a member of the household which is why he was not covered. I can't cut and paste the question so you can see but I've explained it the best I can. Essentially, the question never said Joe was living with Pete, just that he's a "friend" travelling with him in Texas.
Grisel,
Let's go back to the original question. I want to make sure you understand because this is a common question on the state exam.
Pete has a Personal Auto Policy with basic PIP. Pete driving his car takes his friend, Jim and his son, Joe, 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?
Pete and his son, Joe are covered. (Joe is Pete's son.) Pete's friend, Jim is not covered.
I think you simply may havce confused the names when you were trying to explain the question, but if you have additional questions, please let me know.
Jan
Jan, thanks for the detailed explanation and I totally understand it now. However, it would have been easier to u dear stand if it were in better order. It should have said Pete driving car took his son Joe and his friend Jim. The other other sounds like Joe is Jim's son. I know they would have written Jim's son, Joe if that were the case but its not as clear as it could be. This course and manual are riddled with this stuff and frankly I'm surprised. You u dear stand it because you already know but a new person would be confused and I see others have posted about this as well thanks for your help. It's appreciated.
I agree that the manual and the online course are not written in the most friendly way. In that note, and coming back to the question in matter, the reason why Jim is not covered is because the accident happened outside of FL, am I correct?
If so, the manual explains when a person other than the named insured or relatives is covered "if the accident happens in FL" but it does not mention what happens if the accident happens out of the state as it does for the named insured and relatives. We have to asume that there is not coverage.
Please, correct me if I'm wrong.
Allende, you're right about the coverage not applying out of state. He is also not a member of the household. If he were, he would be covered as long as its a covered vehicle owned by the insured. It is in the manual but it takes extra reading because if the way things are put together. I'd prefer that this be confirmed by an instructor :-)
There are two reasons Jim is not covered by Pete's PIP:
They are traveling out of state so there is no coverage unless you are in your vehicle. You are not covered in an unowned vehicle when you are outside of FL.
Also, Jim is not a resident of Pete's household, so even if they were in FL, Jim would not be able to use Pete's PIP - he would have to use his own.
Please let me know if this is still unclear to anyone.
Jan