OLT-Breakroom: Confused on this question

Although I figured it out, it just seems that the frein needed to be clarifeid.

Unit Three - Lesson 2 (19 pages)

10/19

The following question is a review of the content on the previous page. Answer it and then click below to check your response.

Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son and his and son’s friend, 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?

Shawn,

PLease explain what needs to be clarified for this question. I'll be happy to explain or look into why you were confused.

Jan

Hi Jan, I just came upon this question myself and would like clarification as well. The answer came up as $10,400. I originally entered $10,000 since that's the maximum paid. However, I am wondering why $10,400? Thanks!

Marianela,

I need to see the question to be sure I'm answering correctly. I think this is a PIP question that involves two people. Remember that each insured has a $10,000 policy limit for PIP. If you send me the question, I can answer more specifically. Please email me at bradburn@oltraining.com with additional questions.

Jan

Marianela,

I just saw the original question: Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son and his and son’s friend, 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 PIP will pay $6400 ($8000 X 80%) for Pete and $4000 ($5000 X 80%) for Pete's son, Jim. $6400 + $4000 = $10,400

Please let me know if you have additional questions.

Jan

Thanks for answering Jan. However, I am still just a little confused. Pete's son suffered $6,000 in injuries (Jim). That is not being calculated in the math? Joe (the friend) is who suffered the $5,000. So why is the other $6,000 not being calculated? I think I may be missing something. Thanks!

Breaking down the question:

Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and
Pete takes his son and his and son’s friend, 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.

(Is Jim Pete’s son or a person in the other car or a pedestrian???? Let's assume that Jim is actually Pete's son and not a 4th person.)

How much will Pete's PIP pay for all injuries?
Math based on the wrong person's costs...
Pete’s PIP will pay :
$6400 ($8000 X 80%) for Pete
$4000 ($5000 X 80%) for Pete's son, Jim -- Jim suffered $6000 not $5000
$6400 + $4000 = $10,400 -- so this math isn't correct

Actual math
$6400 ($8000 X 80%) for Pete
$4800 ($6000 X 80%) for Pete's son, Jim

$6400 + $4000 = $11,200

$11,200 is paid out for Jim and Pete

Thanks Sandra. Jan clarified for me. Joe is apparently Pete's son. I guess the question has the wrong names there so that's why the answer comes up at $10,400. I think that is why I was confused because the way the question was worded, it sounded as though Jim was Pete's son.

Well, it was clear to me Jim was Petes son because of process of elimination. If the instructor read it carefully and did the breakdown the first time the name confusion would have been picked up.

Hello,

This question is quite confusing. The wording hasn't been changed since the questions previously asked by other students. I think this part throws off people: "Pete takes his son and his and son's friend..." (makes it sound like 4 people). Nonetheless, this is how I understand it:

Pete: $8,000 X 80% = $6,400

Pete's son (which I assume is "Jim"): $6,000 X 80% = $4,800

Son's friend, Joe: $5,000 (which would be that times 80% = $4,000) but I assume he isn't part of the policy.

So then $6,400 + $ 4,800 =$11,200 ?

So what is the correct way of calculating this question? How can I understand it better?

Thank you for your time,

-Rosy

Jan- can we get this question cleared up? I and many others are not getting the same answer as the lesson's. I've cut and pasted my answer me the question below, verbatim. Your answer : 11,200 Please compare your answer to the correct answer: $10,400 The Question: Pete has a Personal Auto Policy with basic PIP. Pete is driving his car and Pete takes his son, Jim and his and son’s friend, Joe, on a trip to Texas. Pete is involved in an auto accident. Pete suffers $8,000 in injuries, Jim suffers $5,000 in injuries, and Joe suffers $6,000 in injuries. How much will Pete's PIP pay for all injuries? So the issue is trying to understand that Pete and his son (many have read as Jim, not Joe), are covered under Pete's PIP which amounts to $11,200 (8000 x 80%) + (6000 x 80%). Jim's friend, Joe, is not covered and thus Pete's PIP Will not cover. Can you confirm?

The problem here is that people are getting confused thinking Joe is Pete's son. Pete's son is Jim not Joe. Thats why you get different answers.

Joe is not covered by the PIP coverage,as he is not a relative or living in the household.

Pete is 6,400 and Joe is 4,000 for a total of 10.400 The 10,000 is per peson

Property and Casualty -General Lines

Confused on this question

Unit Three - Lesson 2 (19 pages)

The following question is a review of the content on the previous page. Answer it and then click below to check your response.