I'm having trouble understanding this question:
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 is $10,400.
My question is, with no deductible being stated, how is this calculated?
Jim is unrelated and the accident was outside of the state, so Jim isn't covered? I think that is the answer.
I had the same question and it's because of the way the question is phrased. The original question shows Joe after Jim and doesn't indicate that he's "Pete's son". It says "Pete driving his car takes Jim and his son Joe". It sounds like it's Jim's son and not Pete's son. It's confusing and all the units are riddled with issues because of the way they were written. Lots of typos and grammatical errors. Sounds as if someone who's first language is not English, put this together or simply isn't organized in thought. I can see lots of areas that need polish to avoid confusion.
I just saw the second part of your question "how it's calculated". Pete's calculation ($8,000 x 80%= $6,400 payable). His son, Joe's ($5,000 x 80% = $4,000). Medical payments are 80% for insured and family member in covered auto regardless of whether it's in Texas or not. There's no deductible. His friend Jim has no coverage out of state so total for Pete & his son Joe is $10,400.
Hope that helps.