Hello , I am confused with 3 questions and the out come of the answers in the quiz for unit 3. I know the no-fault in florida would cover 80% of medical 60% of wages minus deduc if applicable . Im not sure how they came up with these answers. Can you help me understand , thank you :)
1. The insured is an owner and is insured for PIP. She is injured in an accident and has the following damages? medicals-$12,000, lost wages-$6,000. How much will PIP pay if there is a $1,000 deductible? $10,000
2. Tom is injured in a not at-fault auto accident and has temporary injuries. What can be recovered in a tort claim if he has $16,000 in medical bills with a $1,000 PIP deductible? 6,000
3. Dan has a Personal Auto Policy with Liability of 10/20/10 and basic PIP with a $1,000 deductible. He is running one day when a car strikes him. A week later he dies. Medical bills are $7,500 and lost wages are $1,000. How much, if any, will PIP pay in this claim? $10,600
Hi Virginia,
Remember to work PIP questions in this order: 1) subtract deductible from medical expense, 2) apply %, 3) check against the policy limit.
#1 - $12,000-$1,000 = $11,000 X 80% = $8,800 for medical expense. $6,000 X 60% = $3600. $8,800 + $3,600 = $12,400. The policy limit is $10,000 so PIP will pay $10,000.
#2 - Tom's PIP will pay the maximum limit of $10,000 so he can recover the remaining $6,000 in a lawsuit.
#3 - $7,500 X 80% = $6,000 and $1,000 X 60% - $600. $6,000 + $600 = $6600 + $5,000 death benefit = $10,600.
I hope this helps. Please let me know if you have other questions.
Jan
hello yes this helped me thank you . for questions 1 and 2 it never said what the pip coverages were so thats why i was confused , should i assume for these questions moving forward that the pip coverage is 10k ? the third question i forgot to add the death benefit thats why i did not get the correct answer .