Can I have the equation for the following question:
Jim owns an auto and is involved in an accident. He suffers $4,000 in medical and $4,000 of lost income. How much does his insurance pay with extended PIP?
So the equation that's in my head is since extended PIP brings medical and lost income to 80% each $4,000 would be $3,200 so added together his insurance with extended PIP should pay $6,400.... So how is the answer on the quiz $7,200? That would be 90% medical and 90% lost income... Am I missing something? Is there a bit of information not on the question that should be? The one question keeps nagging me in my mind so I need some sort of explanation, equation, and closure please. Thank you!
Shiloh,
Extended PIP increases medical expense from 80% to 100% and work loss expense from 60% to 80%.
Medical benefits paid at $4000 and income loss paid at $3200 = $7200
Jan
Hello,
Thanks for the reply. This is where I was getting confused.
On U3-L2-P5 it states:
Extended PIP extends medical payment coverage from 100% to 80% and work loss coverage from 60% to 80%.
The wording is wrong (should say from 80% to 100%) and that's why I was confused.
Thank you!
Shiloh
Thanks Shiloh. I can understand why you were confused. I will change this immediately. Thanks for letting me know!
Jan
This is great information. I found section 3 the most difficult and questioned this answer as well.
I had difficulty with this as well. Thank you for the clarification. This is the reason I am searching the forums today.
Extended PIP he has 100% coverage on Mecical so he recives $4,000 and 60% of his income. 80% of 4,000 is 3,200 so the ins company pays him $7,200.
Good Morning Students,
Please remember that you can email me at bradburn@oltraining.com and receive a quick response to your questions. I'm happy to answer any questions and clarify areas that are confusing.
Jan