PIP Question

PIP Question

by Lorenzo Acevedo -
Number of replies: 13

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?

Answer is 10,400. Someone please explain.

In reply to Lorenzo Acevedo

Re: PIP Question

by Stephanie Tirado -
Yes please explain I thought it was 5k let person
In reply to Stephanie Tirado

Re: PIP Question

by Jan Bradburn- -
Stepahnie, The PIP policy limit is $10,000 per person per accident. There is also $5000 paid in addition for a death benefit. Jan
In reply to Jan Bradburn-

Re: PIP Question

by Stephanie Tirado -
Understood so then please explain how the correct answer is 10,400 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? .
In reply to Stephanie Tirado

Re: PIP Question

by Hope C. Newton -

Only Pete and his son Joe's injuries would be covered. Jim would not be covered because they are out of state and his not a relative.

Therefore you'd take Pete & Joe's injuries, at total of 13,000 and PIP would pay 80%. Which equals 10,400.

 

Hope that helps.

In reply to Lorenzo Acevedo

Re: PIP Question

by Jan Bradburn- -
Lorenzo, Pete and his son are covered under Pete's PIP. The son's friend is not covered under Pete's PIP. Pete - $8000 X 80% = $6400 Joe - $5000 X 80% = $4000 Total payable under Pete's PIP is $10,400. Jan
In reply to Jan Bradburn-

Re: PIP Question

by Lorenzo Acevedo -

Thank You

In reply to Lorenzo Acevedo

Re: PIP Question

by Andres Morales -

Jan,

If the PIP policy limit is $10,000 per person and per accident., How come the answer is $10,400?? The maximum per accident is not $10,000 then.

In reply to Andres Morales

Re: PIP Question

by Jan Bradburn- -
Andres, The PIP limit is $10,000 per occurrence/per person. There are two people involved in this accident and they each have a $10,000 policy limit for PIP. Jan
In reply to Jan Bradburn-

Re: PIP Question

by Andres Morales -

Thank you Jan but I'm confused, the questions is: How much will Pete's PIP pay for all injuries? It doesn't mention anything about his son's PIP policy. The correct answer should be $10,000 since that's the maximum per occurrence. Am I missinng something?

Please explain.

In reply to Andres Morales

Re: PIP Question

by Jan Bradburn- -
Andres, Pete's son is named insured on Pete's policy as a resident relative. Therefore he is covered under Pete's policy. Jan
In reply to Jan Bradburn-

Re: PIP Question

by Andres Morales -

I understand that, but again, Pete's PIP coverage shouldn'nt pay more than the $10,000 since neither Pete nor his son died. Maximum amount paid is $10,000 for medical payments (per accident)...

In reply to Andres Morales

Re: PIP Question

by Jan Bradburn- -
Andres, The coverage is not "per accident", it is "per person/per accident". Everyone on the policy has $10,000 coverage. Jan
In reply to Jan Bradburn-

Re: PIP Question

by Geoffrey Lange -

I think the confusion comes from the limits. PIP only pays 80% of the medical bills up to 10,000 per person/per accident.